23/05 - Free fall, bears prevail
Updated
Last week, gold prices dropped to a two-month low but have now stabilized as the US dollar's recent surge has paused.
The 'big dollar' was supported by treasury yields, which fell 4.35% on Friday and again this week. The 10-year bond is trading above 3.7% after hitting a low of 3.30% a few weeks ago. Gold traders are concerned about the increase in real US yields.
The US dollar gained some momentum towards the end of the year, and the direction of the DXY Index could affect gold's next move. With cautious optimism in the market and a stronger US dollar, gold prices may continue to fall.
However, the monthly PMI and the US debt ceiling talks, as well as the Fed talks, could favor a decline.
From a technical perspective, if the $1,950 support area is breached, it could trigger bearish traders, leaving gold prices vulnerable to further decline towards the $1900 mark.
XAUUSD
SELL XAUUSD 1968-1971
Stop Loss 1978
Take Profit 1: 1962
Take Profit 2: 1955
Take Profit 3: 1950
NOTE: Always put TP, SL to keep your account safe and win the market!
The 'big dollar' was supported by treasury yields, which fell 4.35% on Friday and again this week. The 10-year bond is trading above 3.7% after hitting a low of 3.30% a few weeks ago. Gold traders are concerned about the increase in real US yields.
The US dollar gained some momentum towards the end of the year, and the direction of the DXY Index could affect gold's next move. With cautious optimism in the market and a stronger US dollar, gold prices may continue to fall.
However, the monthly PMI and the US debt ceiling talks, as well as the Fed talks, could favor a decline.
From a technical perspective, if the $1,950 support area is breached, it could trigger bearish traders, leaving gold prices vulnerable to further decline towards the $1900 mark.
XAUUSD SELL XAUUSD 1968-1971
Stop Loss 1978
Take Profit 1: 1962
Take Profit 2: 1955
Take Profit 3: 1950
NOTE: Always put TP, SL to keep your account safe and win the market!
Note
Running 60pips
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