The benchmark US 10-year yields were pushed to a new two-year high of $1.85%

Gold prices have been struggling since another failure at $1830 last Friday. Yesterday, the XAUUSD pair climbed marginally to get back under the selling pressure on Tuesday as the dollar extends recovery from two-month lows amid a jump in Treasury yields. Aggressive Fed rate hike bets triggered the yields spike ahead of next week’s FOMC decision. Also, the benchmark US 10-year yields were pushed to a new two-year high of $1.85% due to heightened tensions between Russia and Ukraine.  

Against this backdrop, the bullion slipped to the $1810 area where the 20-DMA lies and was last seen clinging to the lower end of the intraday range. Should this moving average withstand the pressure, a bounce could be expected in the near term. However, the upside potential remains limited anyway, at least as long as the precious metal stays below the $1830 resistance zone. 

On the four-hour timeframes, the prices were last seen flirting with the 100-SMA, a break below which would pave the way towards the $1800 psychological support, now strengthened by the 200-DMA. In a wider picture, the $1800 level is also crucial for the bulls as below it, the technical outlook would deteriorate. On the upside, the overall picture may improve somehow should the prices exceed the $1820 intermediate barrier, followed by the mentioned resistance that has been capping gains since November.  

Looking ahead, geopolitical tensions and Fed-related expectations will likely continue to weigh on the non-yielding precious metal. As such, the path of least resistance remains to the downside in the near term. Next week, the prices could get pressured by a hawkish tone by the Federal Reserve that could push the greenback higher across the board. 


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.