Gold Price Forecast: XAU/USD back under pressure near $1800
- On a volatile session, gold reaffirms bearish bias.
- Gold falls sharply even as US yields move lower.
- XAU/USD testing $1805, below attention would turn to the YTD low at $1785.
- Gold is back below 1810$, under pressure and looking vulnerable to the downside. The price hit earlier a one-month low at $1802 and then spiked to $1825. The recovery was short-lived as gold resume the decline falling below 1810$.
XAU/USD is testing the $1805 area, and a consolidation below would expose $1800. Below that area, a test of the year-to-date low at $1786 seems likely.
On the upside, if gold manages to remain above $1820 it could alleviate the bearish pressure. A key level is seen currently at $1831, a short-term downtrend line that if broken, should open the doors to the weekly high at $1841 and to $1848 (June 22 high).
Volatile session between lower yields and risk aversion
The demand for Treasuries rose amid risk aversion. The US 10-year yield dropped to 3.00% and the 30-year fell to 3.12%, the lowest level in weeks. The decline in yields supports gold but at the same time, risk aversion is pushing commodity prices to the downside and the dollar higher.
In Wall Street, the Dow Jones is falling 0.87% and the Nasdaq 1.15%, both indexes off lows. Crude oil tumbles 2.70%.