US dollar soars boosted by Treasury yields.
XAU/USD under pressure, likely to test 1840$.Wall Street posts gains, off highs.
Metals pulled back sharply during the American session amid a stronger US dollar and higher Treasury yields. Gold dropped to $1841, reaching the lowest level since Wednesday.
Gold resumes slide.XAU/USD reached a daily high after the beginning of the American session at $1857 and then turned to the downside, resuming the decline that started on Friday from levels above $1870.
Price remains near the lows, with gold under pressure, testing the $1840 support zone. A break lower could trigger more losses targeting the $1830 area (interim resistance at $1837). A recovery above $1850 could alleviate the bearish pressure.
The slide accelerated as US yields jump. The US 10-year yield rose from 2.94% to 3.04%, reaching the highest since May 12, and the 30-year yield hit 3.19%. Treasuries started to slide after the release of the US employment report on Friday. The figures reduced fear about a recession, leaving doors open to the Fed to tighten policy aggressively.
The key report for the week is US inflation on Friday. Next week will be the FOMC meeting, until then markets won’t hear Fed members (blackout period). CPI numbers will likely influence Fed expectations.
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Gold retreats below $1,850 as US yields push higher
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