Gold Price Analysis: XAU/USD under pressure, hits multi-months just above $1700
- Higher US yields sent metal sharply lower and boosted the DXY.
- Gold tests Tuesday’s lows, bearish pressure mounts.
Gold prices remain depressed, looking at the $1700 level. The yellow metal fell to $1701 hitting the lowest level since June. It then bounced to the upside toward $1710, but it remains under pressure amid higher US yields that boosted the dollar.
The DXY bounced from 90.60 and climbed above 91.00. The greenback also jumped versus emerging market currencies. Equity indices in Wall Street failed to hold to gains and now are mostly lower. The Nasdaq drops 12.40%, and the Dow Jones is up by just 0.09%. The VIX rose to the highest in three days.
Silver and gold tumbled over the last hours. XAU/USD is testing levels under 26.00, while gold pressures toward $1700. The key drivers again are US yields. The 10-year is approaching 1.50%, up more than 7% on Wednesday. Economic data from the US was mostly ignored.
A break under $1700 could increase the bearish bias. The next medium-term support emerges ar5oudn $1675. On the upside, a recovery above $1720 would alleviate the negative.
Technical levels