The precious metal is losing more than 2% in the face of the strength of the US dollar and rising 10-year yields
The first session this week in the international financial markets brought a sharp retreat from risky assets. Gold, which in such situations often created a safe haven for investors, is also dynamically losing today and falling below $ 1830. Yields on US 10-year bonds rose today to 3.29%, and the dollar is the strongest currency of the G7 countries. The disastrous market sentiment is caused by, among others: the highest inflation reading in the US since 1981, record low sentiment (according to the University of Michigan), the cryptocurrency market crash (problems with the Celsius project and postponement of the transition to the Proof of Stake system by ETH) and the resumption of Covid restrictions in China.
Gold fell over 2% on Monday and is currently testing major support at $1,823 an ounce which is marked with lower limit of the 1:1 structure and 61.8% Fibonacci retracement of the upward wave launched in March 2021. Slightly below this level an upward trendline can be found. Should break lower occur, the next target for sellers is located at $1760 an ounce. On the other hand, if buyers manage to halt declines, then upward impulse towards local resistance at $1895 may be launched. Source: xStation5
