On Thursday, the precious yellow metal nose-dived and reached its target of $1,760-65, also note, posting a two-week low as brighter economic outlook and inflation fears propped up U.S. Treasury yields.
Spot gold prices dropped nearly -2% on Thursday as benchmark U.S. 10-year Treasury note marked its biggest one-day advance since November after soaring as high as +1.6% in a sudden move that some described as a “flash” spike.
The yield later settled back down to around 1.52%, its highest level since February 2020.
The advance reflects expectations of higher inflation and higher borrowing costs for companies and individuals.
Yields added to their advance this week even after Federal Reserve Chair Jerome Powell emphasized the central bank’s commitment to easy policy and downplayed the risk of inflation, saying it could take three years or more before the Fed’s goals are reached.
Reviewing the technical aspect, the decline now holds the attention back to $1,760-65.
A New York close under $1,760 would expose the region of $1,680-95.
The Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative and married up with the Moving Average Convergence Divergence (MACD) (also negative), while the ADX indicator is trending bearish.