Recent sessions have not been favorable for gold price action in the short term, as XAU/USD has lost approximately 12% of its value over the last five trading sessions. This has led to the emergence of a consistent bearish bias in recent movements of the metal.
Gold is trying to move higher as traders ignore stronger dollar and rising Treasury yields.
After bouncing back some $300 off its lows yesterday, gold still closed the session lower by 1.9%, meaning it extended the losing run to 9 consecutive sessions. But today it was holding in the positive late in the day in Europe, with equity indices and crude oil also in a holding pattern.
Something unusual is happening in financial markets. A war is raging in the Middle East, oil prices have surged, global uncertainty is at its highest in years — and yet gold, the asset that investors have trusted for centuries as a refuge from chaos, is not just failing to rise.
Gold is in a holding pattern on Tuesday, as we are all waiting to see what rates and war headlines will bring.
Gold prices have come under renewed pressure after a sharp correction from recent highs, with UBS warning that the rally may struggle to extend in the near term. The gold price (XAU/USD) traded around $4,355, down 1.8% on the day, extending a steep pullback from levels above $5,000 seen earlier this month.
Oil prices plummeted in yesterday's trading as Donald Trump announced a ceasefire for five days. As gold finds a spring in its step, is this the beginning of the turnaround for the yellow metal?
Gold: Positioning washout risks and CTA selling – TD Securities
Gold subdued as mixed US-Iran signals keep investors cautious amid ongoing war
Gold: Record losing streak as yields bite – ING
Gold added more of a drop this week while managing to test the downtrend channel support around 4100. As we see over the chart, the market is facing a trading zone between resistance 4535 and support 4100.
Gold prices fell to 4,300 USD per ounce on Tuesday, with quotes remaining under pressure amid the escalating Middle East conflict. Iran has denied reports of any talks with the US, stating that no such contacts have occurred.