Gold Price continues to trade above key support level.10-year US T-bond yield edges lower following Monday’s upsurge.

Sellers could take action if XAUUSD breaks below $1,840.

Gold Price registered daily losses on Monday but managed to erase a portion of its losses on Tuesday. The recent price action, however, doesn’t point to a buildup of bullish momentum. Nevertheless, the significant technical support that aligns at $1,840 stays intact for the time being, causing sellers to remain on the sidelines.

US T-bond yields retreat

Following the previous week’s rally, the benchmark 10-year US Treasury bond yield pushed push higher on Monday and broke above the key 3% level. In the absence of high-impact macroeconomic data releases, the upbeat US jobs report allowed yields to continue to rise. According to the CME Group FedWatch Tool, the probability of the Fed hiking its policy rate by a total of 125 basis points in the next two meetings rose to 15% from 4% last week. With safe-haven flows dominating the financial markets on Tuesday, yields edge lower and help XAUUSD stage a recovery. 

Gold Price technical outlook

Gold Price continues to trade above the 200-day SMA, which is currently located at $1,840. When gold made a daily close below that level on May 31, it managed to reclaim it the next day. Hence, sellers might want to wait for a confirmation that $1,840 turned into resistance before taking action. In that scenario, $1,830 (static level) aligns as interim support ahead of $1,810 (the end-point of the latest downtrend) and $1,800 (psychological level).

On the other hand, $1,850 (Fibonacci 23.6% retracement) forms initial resistance. A daily close above that level could be seen as a bullish development and open the door for an extended rebound toward $1,874 (Fibonacci 38.2% retracement) and $1,890 (50-day SMA, 100-day SMA).

EUR/USD battles to retain the 1.0700 level

The EUR/USD pair bounced from a weekly low of 1.0651 as the greenback retreated alongside US government bond yields. Gains are limited ahead of the European Central Bank monetary policy decision later in the week.

EUR/USD News 

Gold: Tepid recovery within a risk-averse environment

Gold started the day on the back foot, bottoming at $1,836.90 during Asian trading hours. XAU began to recover after London’s opening bell, reaching an intraday high of $1,853.57, as easing US government bond yields undermined demand for the greenback, despite persistent risk-aversion.

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