GOLD: Gold is under extreme pressure

Sep 28, 2023

Gold prices (XAU/USD) remained under selling pressure during the early European session on Thursday. The decline in precious metals was supported by a stronger US dollar (USD) and higher Treasury yields. Gold price is currently trading around 1,876 USD, up 0.11% on the day.

Meanwhile, the US Dollar Index (DXY), a measure of the USD's value against a basket of foreign currencies, rose above 106.65, its highest level since November. US Treasury yields also edged higher. with the 10-year Treasury yield at 4.60%, the highest level since 2007.

Sep 28, 2023

Note

Gold prices fell to a six-month low of around $1,870 per troy ounce on Wednesday. The sharp decline is due to gradually decreasing open interest and leaves open the possibility of a short-term recovery. Meanwhile, the 200-day SMA at $1,927 emerged as the next target for any recovery attempt.