Gold erases daily gains, eyes $1480
- XAU/USD unable to rise above $1490 turns to the downside.
- Bearish bias supported by higher US yields and a recovery of the Greenback.
Gold failed to hold to gains and pulled back, approaching again the $1480 area. Earlier today the ounce rose to $1488 and as of writing trades at $1483, flat for the day but now with a bearish intraday bias.
The recovery from $1480 was capped below $1490. XAU/USD so far holds above the key short-term support seen at $1480. A consolidation below would point to further losses. The chart still favors the downside. A clear recovery above $1500 could remove the bearish bias, targeting levels near $1520 (intermediate resistance at $1510).
The negative bias remains supported today by a correction of the US Dollar across the board and also on the back of higher US yields. The 10-year is again moving to the 1.80% level.
“Gold, silver and platinum had a relatively poor week, with the complex dropping on average, as the market mused about the possibility that additional Fed rate cuts may not be coming anytime soon, after the October reduction. Improving equity valuations and decent US data also played a role in depressing precious metals, with technicals pointing to downside in the near term”, explained analysts at TD Securities.
Levels to watch