Gold Drops Under Amid Surging Us Yields

 Gold Drops Under Amid Surging Us Yields

Gold Drops Under $1970 Amid Surging US Bond Yields

The decline in the Gold (XAU/USD) extended during Monday's session and pushed the precious metal under the $1970 support level. Since there isn't any high-level economic data scheduled in the next few days, Gold prices are highly unlikely to find any support in the short term.

On the one hand, Gold is struggling with bearish pressure while playing with the 21 SMA on the other hand. Considering how the Gold has returned from highs on Friday, the technical setup has become even more interesting.

Gold Prices Target Support At $1950

According to analysts, if Gold fails to establish a good close on the daily chart, it will invite more bearish pressure. As a result, the Gold prices may fall towards the $1955 to $1950 region.

Any further declines in Gold prices will end up challenging the 200 SMA, which currently shows an ascending slope. After that, we have the support level of $1944, which is also the low of the 14th of November.

In addition, the RSI (14) also shows a negative trend but is still above the mid-level, which is a sign that the decline will be temporary.

On the upside, the $1991 will prove to be a tough resistance as it also lines with a negative trendline. After that, the $1993 resistance zone is located, which is also the high of Friday's session. According to experts, any further bullish pressure will allow the yellow metal to touch the $2000 level.

Overall, the market's sentiment appears to be improving during Monday's session as data from Japan and China shows optimism. Although the PBOC has not made any changes to its LPR, the property stocks of China are still enjoying a good upside.

At the same time, the USD is also expected to weaken due to the rumors of rate cuts starting from next year. So that's another factor that will support bullish gold prices over the long term.

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