Breaking: Gold plummets to two-month lows, below $1800 mark

Rallying US bond yields, stronger USD continued exerting heavy pressure on gold.
The upbeat market mood also did little to lend any support to the safe-haven metal.
Break below the $1800 mark might have already set the stage for further weakness.

FXStreet Team FXStreet

Gold dropped to two-month lows during the early North American session, with bears now looking to extend the downward trajectory below the $1800 mark.

The precious metal witnessed heavy selling for the third consecutive session on Thursday and was pressured by a combination of factors. The US Treasury bond yields continued scaling higher amid firming expectations for a massive US fiscal spending, which, in turn, drove flows away from the non-yielding yellow metal.

The US bond yields rose further following the release of better-than-expected US Initial Weekly Jobless Claims. Positive US economic data, along with the progress with coronavirus vaccinations lifted hopes for a strong economic recovery and benefitted the US dollar. This was seen as another factor weighing on the dollar-denominated commodity.

Meanwhile, the optimism remained supportive of the underlying bullish sentiment in the financial markets, which did little to lend any support to the safe-haven XAU/USD or stall the ongoing decline. With the latest leg down, the commodity has confirmed a bearish below the $1800 mark and remains vulnerable to extend the depreciating move.

Technical levels to watch

XAU/USD

Overview
Today last price	1795.2
Today Daily Change	-37.80
Today Daily Change %	-2.06
Today daily open	1833

Trends
Daily SMA20	1850.78
Daily SMA50	1857.93
Daily SMA100	1874.71
Daily SMA200	1853.06

Levels
Previous Daily High	1845.02
Previous Daily Low	1829.68
Previous Weekly High	1875.7
Previous Weekly Low	1831.36
Previous Monthly High	1959.42
Previous Monthly Low	1802.8
Daily Fibonacci 38.2%	1835.54
Daily Fibonacci 61.8%	1839.16
Daily Pivot Point S1	1826.78
Daily Pivot Point S2	1820.56
Daily Pivot Point S3	1811.44
Daily Pivot Point R1	1842.12
Daily Pivot Point R2	1851.24
Daily Pivot Point R3	1857.46

Author

FXStreet Team

FXStreet

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