- Gold breaks below $1,800 and falls to its lowest level since Monday.
- Price testing $1,790 support area; a break down could trigger further losses.
- Metal under pressure despite falling DXY, hurt by rising US yields.
Gold lost more than $10 within minutes after breaking below $1,800. XAU/USD bottomed out at $1,788, reaching the lowest level since Monday. It remains under pressure near $1,790.
The drop came even as the US dollar falls sharply. DXY is down 0.45%, trading at 95.55, the lowest level since Jan 20. On Wall Street it is down. The Nasdaq falls 2.15% and the Dow Jones 0.85%. The deterioration in risk sentiment does not help metals.
Higher US yields and technical factors pushed the XAU/USD down. The 10-year Treasury bond yield jumped from 1.78% to 1.84% in a few hours, while the 30-year yield jumped to 2.18%, the highest level in a week.
The $1,800 level was a relevant intraday support. After breaking down, gold accelerated lower. At time of writing, it is testing the $1,790 area, another relevant technical level. A daily close below should clear the way for further losses, exposing next support at $1,780 (Jan 28 low).
If XAU/USD manages to sustain above $1,790, it could rally. A recovery above $1,800 would ease the downside pressure. The next resistance is located at $1,810.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
