U.S. Treasury yields surge to new highs, spot gold under selling pressure
During Asian trading hours on Thursday, May 30, spot gold prices suddenly and rapidly fell, breaking below the $2330 per ounce mark and plunging nearly $10 intraday. Spot gold is under selling pressure. The surge in US Treasury yields to a one-month high is supporting demand for the dollar.
Time:
2024-05-30 16:29
During Asian trading hours on Thursday, May 30, spot gold prices suddenly and rapidly declined, briefly falling below the $2330 per ounce mark and experiencing an intraday drop of nearly $10. Spot gold is facing selling pressure. The surge in US Treasury yields to a one-month high is supporting demand for the dollar.
Gold is gaining downward momentum and is approaching the support level of $2325.30 per ounce. A break below this level could lead to a more significant price decline.
Spot gold closed down sharply on Wednesday, falling $23.38 (0.99%) to settle at $2337.89 per ounce.
US Treasury yields rose for a second consecutive day on Wednesday, with the 10-year Treasury yield increasing by 7.2 basis points to 4.614%, reaching a high of 4.638%.
The US Dollar Index closed up strongly by nearly 0.5% on Wednesday, reaching 105.14. During Asian trading hours on Thursday, the US Dollar Index further rose to around 105.20.
Short-Term Technical Outlook for Gold
Technical indicators on the daily chart suggest that gold prices may continue their downward trend. Gold is breaking below the 20-day simple moving average (SMA), while technical indicators are gaining downward momentum and crossing below the midline. Finally, the 100-day SMA and 200-day SMA continue to trend upward, but are significantly below the current gold price level.
According to the 4-hour gold chart, the outlook for gold has turned bearish in the short term, although a sustained decline seems unlikely. Gold is trading below all moving averages, with the 20-period SMA acting as recent resistance near $2347.10 per ounce. Meanwhile, technical indicators have flattened after crossing below the midline into negative territory, limiting further downside. Last week, gold touched a low of $2325.30 per ounce; a break below this level is needed to confirm a more significant decline in the future.
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