6:11 PM · 26 January 2023

Gold slides amid higher yields and stronger USD

Gold price fell over 1.0% and tested $1920 mark on Thursday, pulling further away from nine-month highs as recent US data, including upbeat GDP, Claims and Durable Goods Orders reports, pushed the benchmark 10-year US Treasury bond yield above 3.5% and strengthened greenback, which in turn puts pressure on precious metals. Elevated volatility is expected on Friday, as Fed's preferred inflation gauge - Core Personal Consumption Expenditures (PCE), will be released. From a technical point of view, gold price pulled back after an unsuccessful attack on the crucial resistance zone around $1950. As long as price sits below this level, a larger downward correction may take place. Nearest major support to watch can be found around $1890. This level is marked with previous price reactions and 23.6% Fibonacci retracement of the upward wave launched in May 2019. Also hidden bearish divergence occurred on the Momentum indicator which additionally supports sellers.

GOLD, W1 interval. Source: xStation5 

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