Gold Price Forecast: XAU/USD tumbles after US data, hits two-day lows under $1,800


  • Gold is under pressure as US yields jump after US data. 
  • US Q3 GDP was revised from 2.9% to 3.2%. 
  • Wall Street extends losses, US Dollar soars. 

Gold prices dropped sharply from nearly $1,820, reaching levels under $1,800 following the release of US economic reports

Looking for Santa’s rally 

Economic data released in the US showed the economy expanded at an annualized rate of 3.2% during the third quarter, above the 2.9% of the previous estimate. Price indicators were also revised higher. 

Following the numbers, US yields jumped. The US 10-year yield rose from 3.64% to 3.67% while the US 2-year yield soared from 4.20% to 4.26%. The move in the bond market weighed on XAU/USD that sank. At the same time, equity prices in Wall Street extended losses. As of writing, the Dow Jones is losing 0.93% and the SP& 500 drops by 1.24%. 

Gold bottomed at $1,798, the lowest level in two days. It is hovering around $1,800 far from the recent high of $1,824. The correction is taking place after the yellow metal was unable to consolidate above the $1,820 area. A daily close above, should open the doors to more gains.

Technical levels 

XAU/USD

Overview
Today last price 1807.84
Today Daily Change -6.49
Today Daily Change % -0.36
Today daily open 1814.33
 
Trends
Daily SMA20 1783.31
Daily SMA50 1727.56
Daily SMA100 1721.93
Daily SMA200 1784.9
 
Levels
Previous Daily High 1823.84
Previous Daily Low 1811.92
Previous Weekly High 1824.55
Previous Weekly Low 1773.83
Previous Monthly High 1786.55
Previous Monthly Low 1616.69
Daily Fibonacci 38.2% 1816.47
Daily Fibonacci 61.8% 1819.29
Daily Pivot Point S1 1809.55
Daily Pivot Point S2 1804.78
Daily Pivot Point S3 1797.63
Daily Pivot Point R1 1821.47
Daily Pivot Point R2 1828.62
Daily Pivot Point R3 1833.39

 

 

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