Gold Decreases Again When Market Sentiment Gives Advantage, What's the Reason?


The yellow metal retreated about 0.90% at the end of the Asian trading session amid cautious sentiment and falling US Treasury bond yields.

The latest US economic data shows weakness and warrants lower interest rates. However, XAU/USD is still trading at a loss and has returned to the lows of the end of last month.

Meanwhile, the price of gold is now at $2,326.59 which has remained since it opened at the opening of trading this morning.

Not only traditional commodities, crude oil prices were also under heavy pressure earlier amid concerns that the global economy may grow at a slow pace and affect its demand in the market.

US Treasury yields, which are usually an indicator of gold's direction, fell seven basis points for the 10-year period.

However, the US dollar traded with a small gain of 0.04% and retraced the position of other major currencies by rising to 104.08 basis points.

In terms of data, the US economy showed April JOLTS release data and Durable Goods Orders reflected resilient sentiment but it weakened amid higher borrowing costs set by the Federal Reserve (Fed).

Technical indicators still consider the price of gold to remain at an all-time high despite falling below the 50-day SMA at $2,334. The latest price position and momentum in favor of sellers can pave the way for a pullback.

The latest bearish impulse will open a new trend and place the support level at the lowest position of May 8 at $2,303 followed by the position of May 3 at $2,277.

If there is a rebound, the market expects a favorable position at $2,400 followed by an ATH level at 2,450 and a peak at $2,500.