Gold sellers extend their control below $2,700 as the US holiday looms
Gold sellers are continuing to dominate the market, pushing prices below $2,700 early Monday as concerns grow over the US Dollar’s rally and China’s economic woes. The US holiday could also lead to exaggerated price movements in the coming days.
Gold faces challenges as US Treasury bond yields rebound
Gold prices are looking to challenge the critical support level of $2,641 as rebounding US Treasury bond yields and worries about China’s economic outlook put pressure on the precious metal. The pause in the US Dollar’s surge is not enough to counteract these negative factors affecting Gold prices.
Gold price dynamics amid economic data and market sentiment
US Treasury bond yields are making a comeback in Asian trading following a dovish interest rate decision by the US Federal Reserve last week. Meanwhile, concerns over China’s economic health and disappointing inflation data are weighing on Gold prices. Investors are also keeping an eye on potential tariffs that could be imposed by the US in the future.
As we look ahead, the market sentiment will play a crucial role in determining the direction of the USD and Gold prices, especially with the upcoming release of the US Consumer Price Index data.
Gold technical analysis and price outlook
On the daily chart, Gold prices have breached key support levels and are facing additional downside pressure. If sellers gain momentum, we could see a further drop towards the $2,641 support level. However, buyers will need to push the price above $2,700 to test the resistance at $2,718.
Gold is widely regarded as a safe-haven asset and a hedge against inflation and depreciating currencies. Central banks are major holders of Gold, using it to support their currencies during turbulent times. The precious metal has an inverse correlation with the US Dollar and US Treasuries, making it an attractive asset for diversification in investment portfolios.
Various factors can influence Gold prices, including geopolitical instability, economic data releases, and currency movements. As we continue to monitor market developments, the interplay between these factors will be crucial in determining the future direction of Gold prices.
Source : www.fxstreet.com