FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
FxPro information and reviews
HFM information and reviews

XAU/USD plunges below $1,800 amid rising US T-bond yields

29 December 2021

Gold came under renewed bearish pressure on Wednesday. 10-year US Treasury bond yield is testing 1.5%. Next near-term technical support is located at $1,790. Gold closed in the negative territory after jumping to its highest level in more than a month at $1,820 on Tuesday and seems to be having a hard time shaking off the bearish pressure mid-week. XAU/USD was last seen losing 0.6% on a daily basis at $1,795.

The renewed dollar strength on Wednesday is weighing on XAU/USD ahead of the American session. The US Dollar Index is clinging to modest daily gains at 96.35 as investors remain cautious in the face of the surging number of Omicron cases. 

There won't be any high-tier macroeconomic data releases in the remainder of the day and investors will remain focused on the risk perception. As of writing, US stocks futures were posting small gains, suggesting that risk flows could return in the second half of the day but thin trading conditions make it difficult to assess the market sentiment. In the meantime, the benchmark 10-year US Treasury bond yield is edging higher toward 1.5% and not allowing XAU/USD to stage a rebound. 

Gold technical outlook

On the four-hour chart, the Relative Strength Index dropped below 50, confirming the view that the bearish pressure is gathering strength. On the downside, the 100-period SMA is forming the first near-term technical support at $1,790 ahead of $1,785 (static level).

On the upside, $1,800 (psychological level) aligns as first resistance before $1,805 (200-period SMA). In case a four-hour candle closes above the latter, buyers could see that as an opportunity to reclaim the control of the pair's action.


Share: Tweet this or Share on Facebook


USD & Yields higher, Yen, Stocks & Gold sink
USD & Yields higher, Yen, Stocks & Gold sink

A blockbuster NFP on Friday (571k new jobs vs 185k) & strong Services PMI (55.2 vs 50.5) has lifted the Dollar and Yields, sinking Stocks and Gold (the 3 mth Gold rally is over)...

7 Feb 2023

Gold traders appear hesitant
Gold traders appear hesitant

Gold finally broke out of the consolidation after being range bound for nearly 11 days. The correction to the downside was expected as gold traded in the overbought territory...

3 Feb 2023

Do safe haven currencies still exist?
Do safe haven currencies still exist?

At the end of last year, Swiss National Bank (SNB) President Thomas Jordan told news media that both the Swiss franc and the US dollar could be considered safe havens...

3 Feb 2023

USD Index appears bid and approaches 102.00 ahead of Payrolls
USD Index appears bid and approaches 102.00 ahead of Payrolls

The index looks to extend the post-ECB rebound. January Nonfarm Payrolls will take centre stage later. Other key data includes the ISM Non-Manufacturing...

3 Feb 2023

USD Index appears depressed post-Fed, breaches 101.00
USD Index appears depressed post-Fed, breaches 101.00

The index drops to 10-month lows near 100.80. The dollar remains on the defensive post-FOMC event. Initial Claims, Factory Orders next of note in the docket...

2 Feb 2023

Can The GER40 Keep Its Strength?
Can The GER40 Keep Its Strength?

As attention turns to the approaching Fed and ECB announcements, the GER40 index maintains stability near its best level since September last year...

2 Feb 2023

Editors' Picks

FXCM information and reviews
ActivTrades information and reviews
RoboForex information and reviews
MultiBank Group information and reviews
MultiBank Group
Libertex information and reviews
Vantage information and reviews

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.