Gold deepens drop and clears support at $1,900
Gold as well as other precious metals are having another bad day. While the scale of declines is not as big as it was for example yesterday, declines can be spotted on gold, silver and platinum markets today. Reasons for the drop are the same as during the first two trading days of the week - USD strengthening! The US dollar can be found among the best performing G10 currencies for another day in a row. Interestingly, USD strengthening comes even in spite of a slight pullback in yields. US 10-year Treasury yield is dropping around 2 basis points today, to 4.52%.
Taking a look at the GOLD chart at the D1 interval, we can see that the price of this precious metal slumped below an important price zone today. Apart from being a psychological support, the $1,900 area is also marked with previous price reactions as well as the 38.2% retracement of the upward move launched in late-September 2022. A recent local low at $1,885 mark is being tested at press time. A drop below this hurdle would pave the way for a test of the medium-term swing level at $1,870 and potential test of the lower limit of the bearish channel, which can be found at around $1,835 per ounce.
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Source: xStation5
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