📉Gold posts the biggest decline since mid-December 2024 falling below $2900 pressured by falling US treasury yields
Gold (GOLD) is experiencing a 1.5% decline today, driven by profit-taking pressure and a decrease in U.S. Treasury yields. Additionally, anticipated peace talks related to Ukraine appear to be exerting some pressure on the precious metal. Since the beginning of this year, gold has seen a dynamic rise, supported by investor concerns about the future of the U.S. economy, increasing uncertainty related to tariffs proposed by Trump that could lead to a trade war, as well as prospects of strengthening inflation in the U.S.
Yields on 10-year U.S. Treasuries have retreated today by over 5 basis points to 4.47%, whereas at the beginning of the week they reached 4.65%. Short-term yields have also fallen by over 5 basis points to 4.25%. U.S. retail sales data for January surprised with an unexpected decline of -0.9% m/m, while markets expected a 0.2% pullback compared to the December 2024. In the previous month, the m/m increase was 0.7%.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appGOLD (H1 interval)
Looking at the hourly interval, we see that the price is testing the EMA200 (red line), but the technical situation indicates a decisive advantage for the supply side, with a potential double top formation at the $2,930 per ounce level. The next levels that gold may test are $2,820 per ounce, where we see previous price reactions and the 38.2% Fibonacci retracement of the upward wave from January.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
