Gold spot, at a value of $1,864.95, has reduced its previous losses and is now being traded at $1,866.44. This is due to the decrease in US Treasury bond yields from their peak levels, leading to a weakened US dollar.

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• Gold spot trims losses, trading at $1866.44, after US Treasury bond yields retract from multi-year highs, causing the USD to weaken.

The pair currently trades last at 1864.95.

The previous day high was 1904.13 while the previous day low was 1872.59. The daily 38.2% Fib levels comes at 1884.64, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1892.08, expected to provide resistance.

Gold spot tumbles as Wall Street closes, but earlier printed a six-month low of $1857.82, as US Treasury bond yields skyrocketed, a headwind for the yellow metal. Nevertheless, the XAU/USD trimmed some of its losses as US bond yields retraced. At the time of writing, the non-yielding metal trades at $1866.44 after hitting a daily high of $1879.58, down 0.49%

Market sentiment improved on Thursday, while US Treasury bond yields retreated from multi-year highs of around 4.68% to 4.577%. Consequently, the Greenback (USD) is weakening, as portrayed by the US Dollar Index (DXY), down 0.49%, at 106.13.

Data in the United States (US) came as expected, particularly Gross Domestic Product (GDP) for Q2 on its final reading at 2.1%, aligned with the consensus but below the previous reading, which was upward revised to 2.2%. Inflation for the second quarter dropped to 1.7%, below the previous reading at 3.9%.

At the same time, the US Department of Labor revealed that Americans filing for unemployment on the week ending on September 23 rose by 204K, below estimates of 215K but more than last week’s 202K, portraying a robust labor market.

Aside from this, Federal Reserve officials continued to cross newswires. Chicago Fed’s President Austan Goolsbee said if the US central bank sees lack of progress on inflation, it would have to raise rates further while saying he’s not decided what to do at the next meeting. Meanwhile, Richmond’s Fed President Thomas Barkin stated the latest five months of inflation data have been encouraging, though he commented that it’s too soon to say what’s next on monetary policy.

After dropping to a new cycle low on Wednesday, Gold slumped below $1860, but it remains shy of the March 8 swing low at $1809.48. It should be said a death-cross in Gold’s daily chart, formed since Tuesday, cementing the XAU/USD bearish bias, but If it achieves a weekly close below $1900, that could exacerbate a drop to the latter and $1800. Otherwise, the yellow metal could pose a threat and test the 20-day moving average (DMA) at $1916.57

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1864.45 at the time of writing. Pair opened at 1874.92 and is trading with a change of -0.56 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1920.54, 50 SMA 1925.65, 100 SMA @ 1938.33 and 200 SMA @ 1927.04.

The previous day high was 1904.13 while the previous day low was 1872.59. The daily 38.2% Fib levels comes at 1884.64, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1892.08, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1863.63, 1852.34, 1832.09
• Pivot resistance is noted at 1895.17, 1915.42, 1926.71

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