- Gold breaks under $1800 and drops to lowest since Monday.
- Price testing the $1790 support area; a break lower could trigger more losses.
- Metal under pressure despite the decline of the DXY, affected by higher US yields.
Gold lost more than $10 in a few minutes after breaking under $1800. XAU/USD bottomed at $1788, reaching the lowest level since Monday. It remains under pressure near $1790.
The decline took place even as the US dollar drops sharply. The DXY is down 0.45%, trading at 95.55, the lowest since January 20. In Wall Street the red dominates. The Nasdaq tumbles 2.15% and the Dow Jones drops by 0.85%. The deterioration in risk sentiment is not help for metals.
Higher US yields and technical factors pushed XAU/USD to the downside. The 10-year jumped from 1.78% to 1.84% in a few hours, while the 30-year yield rose to 2.18%, the highest level in a week.
The $1800 was a relevant intraday support. After breaking lower, gold accelerated to the downside. As of writing, it is testing the $1790 area, another relevant technical level. A daily close below should clear the way to more losses, exposing the next support at $1780 (Jan 28 low).
If XAU/USD manages to hold above $1790 it could rebound. A recovery above $1800 would alleviate the bearish pressure. The next resistance stands at $1810.