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Gold Price Today, after failing to sustain above the $2,000 mark last week. Started the new week with a decline, dipping below $1,990. The 10-year US Treasury bond yield has surged over 1% to a level above 4.6%. Thus, making it challenging for XAU/USD to gain momentum.
Technical Support Levels
The technical perspective suggests that a further drop below $1,980 could find support around last week’s low near $1,970. If there’s continued selling pressure, gold might face vulnerabilities sliding towards the $1,964 range. En route to the significant support zone at $1,954-1,953.
Resistance Ahead
On the flip side, the $2,000 mark stands as an immediate barrier, followed by Friday’s high around $2,004 and the year-to-date peak near $2,009. A sustained strength beyond the latter could push gold prices towards the resistance at $2,022.
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Factors Influencing Gold Price Today
The weaker start for Gold prices (XAU/USD) in the new week can be attributed to a risk-on sentiment in the markets, driven by a strong rally in equities. Furthermore, the increase in US Treasury bond yields is diverting capital from the non-yielding precious metal.
The US Dollar (USD) is currently trading near a six-week low as the Federal Reserve is expected to halt interest rate hikes, which restrains upward pressure on bond yields. This scenario favors the US dollar-denominated gold price, finding support near the $1,980 level.
Israel-Hamas Conflict
Alongside these factors, the ongoing Israel-Hamas conflict adds to market caution and could limit potential losses for XAU/USD, preventing a significant decline from the year-to-date peak reached on October 27.
Gold price today dipped as a potential pause in the Federal Reserve’s rate hikes was somewhat offset by traders favoring riskier assets over the precious metal. Thus, last week, Gold saw some strength due to weaker-than-expected US nonfarm payroll data and less hawkish signals from the Fed, which weakened the US Dollar.
Copper Prices Surge Amid Fed Developments
Copper prices experienced a 0.7% surge in anticipation of the end of the Fed’s hiking cycle,. Thus, relieving pressure on global industrial activity. The focus remains on trade and inflation data from China, the world’s leading copper importer, due to be released on Tuesday.
Gold Prices Recap
In summary, Gold Price Today struggles to stay above $1,990 as the new week begins, impacted by rising US Treasury bond yields and a risk-on sentiment in the markets. however, the ongoing Israel-Hamas conflict and a weaker US Dollar provide some support to the precious metal. Copper prices surge amid expectations of changes in the Fed’s monetary policy.
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Disclaimer: Please note that this article serves solely for informational purposes and shall not comprise of financial advice. We advise readers to conduct with research and consult with financial professionals before making any investment decisions
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