- Gold price has tumbled to near $1,763.00 as the risk-on profile has faded.
- Geopolitical tensions between North Korea and the US have improved safe haven’s appeal.
- Fed Daly’s hawkish commentary has supported the US Treasury yields.
Gold price (XAUUSD) has witnessed a steep fall after surrendering the critical support of $1,770.00 in the Asian session. The precious metal has tumbled to near $1,763.00 as investors are turning risk-averse after North Korea warns the US that it will face ruthless military activity against its joint drills in its region.
North Korea's foreign minister, Choe Son Hui, slammed a recent trilateral summit between the United States, South Korea, and Japan, during which the leaders criticized Pyongyang's weapons tests and pledged greater security cooperation, as reported by Reuters. This has triggered the risk of geopolitical tensions, which has improved the appeal for safe-haven assets.
The entire recovery witnessed in S&P500 futures in Asia has faded now as investors’ risk appetite has trimmed. Meanwhile, the 10-year US Treasury yields have rebounded to 3.72% as San Francisco Fed President Mary Daly hiked its interest rate guidance. Fed policymaker has considered a range of 4.75% - 5.25% as reasonable for the policy rate end-point. She further added that the central bank wants to see a slowdown in the economy to cool down the red-hot inflation.
Gold technical analysis
Gold price has delivered a downside break of a Rising Wedge chart pattern that indicates exhaustion in the upside momentum. The 20-and 50-period Exponential Moving Averages (EMAs) are on the verge of delivering a bearish crossover of around $1,772.90. Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more downside in the asset ahead.
Gold hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD stays firm near 0.6300 after strong Chinese exports data
AUD/USD is trading well bid near 0.6300 in Asian trades on Monday, opening the week on the front foot. Risk sentiment remains in a sweeter spot following the weekend's news of lower US tariffs on Chinese electronic supply chain and strong Chinese exports data for March. Tariffs talks will remain on the radar.
USD/JPY recovers to 143.00 amid volatile trading
USD/JPY is trimming losses to retake 143.00 in Monday's Asian trading. The US Dollar pauses its latest leg down, with traders digesting Trump's tariff news from the weekend. However, the Fed-BoJ policy divergence expectations underpin the Japanese Yen, keeping the weight intact on the pair.
Gold price consolidates near all-time peak as bulls pause for breather
Gold price refreshes record high as escalating US-China trade war boosts safe-haven demand. US recession fears, Fed rate cut bets and a bearish USD further benefit the XAU/USD pair. Improving risk sentiment might cap the precious metal amid a slightly overbought daily RSI.
Bitcoin is on the verge of a breakout while Ethereum and Ripple stabilize
Bitcoin price approaches its key resistance level at $85,000 on Monday; a breakout indicates a bullish trend ahead. Ethereum and Ripple found support around their key levels last week, suggesting a recovery is in the cards.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.