Gold Prices Under Pressure from Strong Dollar and Rising Yields
The price of gold and silver continues to face bearish fundamental outlook due to increasing US Treasury yields and growing Fed rate hike bets. According to the source, a strong dollar and rising yields are taking the upside down on non-yielding assets like gold. The yield on the benchmark 10-year U.S. Treasury note traded at 1.84% and the two-year note traded at 0.31%. The greenback also extended higher against a basket of currencies.
The current price of gold is around $4,275, still below the moving averages and the rising trendline. Further, the series of lower highs remains intact, suggesting that the recent bounce in the price of gold is probably a correction within a larger broader trend.
The next area of resistance sits at $4,304, with support between $4,245 and $4,216 remaining relevant if gold breaks lower. The RSI is still biased towards the downside but is in neutral territory.