Gold Slips as US Yields Climb: A Fundamental and Technical Analysis
Tuesday, 8 October 2024, 14:45
Fundamental Analysis of Gold
Gold prices are facing increased pressure due to rising US yields. Traders are watching closely as the bond market influences investor sentiment. A significant development in the Middle East peace process may also play a role in gold's appeal as a safe haven.
Impact of Rising US Yields
- Higher yields traditionally strengthen the dollar, causing gold to lose some luster.
- If XAU/USD breaks above $2,650, further resistance will be noted at $2,670.
- Clearing the critical threshold of $2,700 may set the stage for a challenge to the year-to-date high of $2,685.
Technical Analysis Insights
On the technical side, analysts are predicting that a breach of $2,650 could open the doors for buyers. However, the importance of $2,670 cannot be overstated as a vital resistance level. Investors should prepare for volatility in the coming sessions.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.