On Wednesday, gold remains under pressure amid rising yields of US Treasuries and the strengthening of the dollar.
On Tuesday, the yield on 10-year US government bonds rose to its highest levels in almost a year of trading, provoking a sharp strengthening of the American currency. Gold was under very strong pressure and renewed lows in almost 2 weeks of trading.
Today the market situation has not changed. The yield of US Treasuries continues to rise. The dollar index also maintains an upward movement vector. Moderate support for gold is provided only by the situation on stock exchanges, where the main indices show mixed trading dynamics. But globally, the market is now dominated by restrained optimistic expectations regarding the prospects for economic recovery. Many investors hope to accelerate the pace of recovery with the beginning of spring, when vaccination programs launched in many countries begin to show first results.
Prices for other precious metals, including silver, palladium and platinum, are falling in line with gold.
In the economic calendar today, it is worth paying attention to the publication of the report on retail sales in the US for January and the minutes of the last FOMC meeting.
On the chart, the price dropped below 1794.00. This is a signal in favor of the continuation of the downward movement towards the level of 1780.00, and in the medium term to 1760.00.
The main scenario is a correction to 1804.00 and a downward reversal.
An alternative scenario is a decline to 1780.00 from current levels.
The current fundamental outlook is negative. We consider shorts on a pullback to 1804.00.
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