Touching the support zone overnight, what are the opportunities
Gold had an uncontrolled downward trend one day when the gold discharge fund made a sudden move to discharge nearly 4 tons of gold.
Although all the news is good for gold, it is still not enough for gold to level off.
Let's take a look at some news that will affect gold prices right here:
Spot gold fell close to the $1,900 mark on Tuesday before recovering somewhat, as the dollar rebounded and Treasury yields rose, putting all the pressure on bullion.
Spot gold, which is measured by real-time physical bullion transactions and is watched more closely by some traders than futures contracts, hit $1,899.21 at its lowest level in 2019. session, falling below the $1,900 support level.
“A drop below $1,900 could be a bearish move,” said Craig Erlam, an analyst at online trading platform OANDA. “Of course, we could see further decline and we saw some support today around $1,900 but it certainly looks vulnerable.”
Spot prices fell to a low of $1,884.35 in August.
Gold prices have seen renewed weakness this month due to the combined pressure of Treasury yields.
Yields on 10-year U.S. bonds jumped to a new 16-year high on Tuesday, hitting a level not seen since July 2007.
The Dollar Index hits its highest not seen since November 2022. A stronger dollar typically deters holders of other currencies from buying dollars
Fed Chairman Powell said in a news conference last week that energy-driven inflation is one of the central bank's bigger concerns.
Although all the news is good for gold, it is still not enough for gold to level off.
Let's take a look at some news that will affect gold prices right here:
Spot gold fell close to the $1,900 mark on Tuesday before recovering somewhat, as the dollar rebounded and Treasury yields rose, putting all the pressure on bullion.
Spot gold, which is measured by real-time physical bullion transactions and is watched more closely by some traders than futures contracts, hit $1,899.21 at its lowest level in 2019. session, falling below the $1,900 support level.
“A drop below $1,900 could be a bearish move,” said Craig Erlam, an analyst at online trading platform OANDA. “Of course, we could see further decline and we saw some support today around $1,900 but it certainly looks vulnerable.”
Spot prices fell to a low of $1,884.35 in August.
Gold prices have seen renewed weakness this month due to the combined pressure of Treasury yields.
Yields on 10-year U.S. bonds jumped to a new 16-year high on Tuesday, hitting a level not seen since July 2007.
The Dollar Index hits its highest not seen since November 2022. A stronger dollar typically deters holders of other currencies from buying dollars
Fed Chairman Powell said in a news conference last week that energy-driven inflation is one of the central bank's bigger concerns.
