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Gold Price: As rates fall, XAU/USD seeks a rebound towards $1750
Gold is seeking a seven-week low of 17 1,728, as investors seek to re-examine the 50 1,750 barrier. The reduction in US Treasury rates across the curve saves the price of gold, as negative sentiment in global markets increases the demand for government bonds. Investors were affected by the US debt ceiling, China’s energy deficit, and the fight over Evergrand’s foreign payments.
Rising expectations of faster-than-expected feed-tipping, rising inflation, and commodity prices pushed U.S. stock returns to several-month highs on Tuesday. As a strong product, the price of gold fell, which affected the non-producing yellow metal.
Gold in Asia, after an explosive day of risk aversion that began the European session on Tuesday, as US prices rose, dragged the US dollar and sent global shares significantly lower. Is flat From a high of 7 1,760.91, gold hit a new daily low of 7 1,728.
The US currency is strengthening.
The dollar hit a ten-month high as investor prices are expected to rise in anticipation of the Federal Reserve suspending asset purchases in November, after which interest rates are expected to rise. In recent activity, 10-year Treasury rates hit a three-month high of 1.5530%.
Analysts at TD Securities noted that despite the possibility of inflation, gold has lost its luster as global markets have gradually weighed on Fed emissions.
“Although the ‘talk to talk’ about tipping removed the sting from the signaling channel of quantitative easing, the current increase in rates potentially reflects the stock effect, which is hurting precious metals.” ۔ ”
Analysts note, “Looking ahead, the story of ‘stagflation’ retains its grip on the market, as traders expect a time of high inflation and sluggish GDP, but it is still in the midst of rising demand for gold.” Has not changed. ”
Gold technical analysis
“Failure to exceed $ 1,760 on a closing basis in the coming sessions could lead to further supply and downward expansion,” the research said yesterday and earlier this week.
Based on the 272% Fibonacci retracement of the correction thresholds, the corrections labeled A and B on the chart below indicate their targets. They are priced at 1,732 and 1,728, respectively:
To find out more about the price of gold, visit:
Weekly gold chart: XAU / USD bearish bias is forecast below $ 1,760.
However, with 1,732 targets on daily expansion, we can expect some progress.