Gold Price Analysis: XAU/USD tumbles hitting levels under $1720 as US yields rebound
Gold Price Analysis: XAU/USD tumbles hitting levels under $1720 as US yields rebound
Gold prices dropped more than $20 from the daily high and bottomed at $1719 during the American session. The decline took place as US yields bounced to the upside. The recovery of XAU/USD is being challenged.
After the European Central Bank meeting, following Lagarde’s press conference and ahead of the results of the 30-year bond auction, US yield turned to the upside. The 10-year rose from a one-week low at 1.475% to 1.546%. The move offered some support to the dollar that trimmed losses only modestly.
Stocks bulls can take a rest – But gold ones can‘t
The daily banging on the 3,900 threshold shows in yesterday‘s upper knot, and this milestone has very good chances of being conquered today. More important than the exact timing though, are the internals marking the setup –" we‘ve indeed progressed very far into this correction. While not historically among the longest ones, it‘s still getting long in the tooth –" just as I was writing throughout the week.
And it is getting stale, even if I look at the star non-cofirnation, the high yield corporate bonds. Relatively modest daily upswing, outshined by investment grade corporate bonds. Yes, the credit markets are calming down, and the tiny daily long-term Treasuries upswing doesn‘t reflect that fully just yet. Besides giving breathing room to defensives such as utilities and consumer staples, it‘s also very conducive to the precious metals sector.
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FXStreet Team
FXStreet
