Key Insights
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Gold is moving lower as traders focus on rising yields.
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The recent sell-off in the U.S. stock market did not provide any support to gold.
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A move below the support at $1880 will push gold towards the next support level at $1865.
Gold Is Losing Ground At The Start Of The Week
Gold is moving towards the support level at $1880, while Treasury yields are trying to settle above yearly highs.
Treasury yields gained upside momentum in recent trading sessions, which was bearish for gold markets. Currently, the yield of 30-year Treasuries is trying to settle above the psychologically important 3.00% level. In case this attempt is successful, the yield of 30-year Treasuries will move towards the resistance at 3.05%, which will put more pressure on gold.
The recent sell-off in the U.S. stock market did not provide any support to gold, and it looks that gold traders are mostly focused on rising yields.
VanEck Gold Miners ETF moved back below the $35 level and will likely remain under pressure in case gold stays in the $1880 – $1890 range. If gold manages to settle below the support at $1880, GDX may gain significant downside momentum.
Technical Analysis
Gold settled below the support at $1890 and is trying to get below the next support level at $1880. In case this attempt is successful, gold will move towards the support, which is located at $1865.
A successful test of the support at $1865 will open the way to the test of the next support at $1850. If gold declines below this level, it will head towards the support at $1830.
On the upside, the previous support at $1890 will serve as the first resistance level for gold. In case gold gets back above this level, it will head towards the resistance at $1900.
A successful test of the resistance at $1900 will push gold towards the next resistance at $1915. If gold moves above this level, it will head towards the 20 EMA at $1925.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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