Gold Price Analysis: XAU/USD drops back below $1840 as DXY and US yields rebound
- Metals failed to break higher and weaken as the DXY rebounds.
- Gold approaching support area around $1830/35.
Gold peaked after the beginning of the American session at $1847/oz and then turned to the downside. Recently dropped below $1840 and it trades at $1836, the lowest since Asian hours, approaching a critical support area.
Since Tuesday’s US session, the area around $1830/35 has been a key support. A break lower could trigger more volatility and more losses. It is also a level that could favor a rebound.
The move lower took place amid a US dollar recovery on a quiet session in the FX market. The DXY erases losses and is back at 90.40 after testing the weekly low. In Wall Street stocks are mixed. The Dow Jones drops 0.04% and the Nasdaq gains by 0.44%. Economic data from the US came in below consensus with jobless claims falling less than expected.
US bond yields are moving higher supporting the dollar and probably keeping metal with the upside limited. The US 10-year yield rose to 1.15%. XAG/USD is off lows, after being unable to break the $27.30 strong resistance.
Technical levels