“We’re seeing higher yields, we’re still seeing much tougher rhetoric from certain central bankers inside the Fed… That has taken some of the momentum out of gold and triggered a correction that arguably should have already happened.” said Craig Erlam, senior market analyst at OANDA. On Tuesday, gold prices fell 1.8% as comments from US central bank officials, including Federal Reserve Bank of St Louis President James Bullard, boosted the dollar and yields. 10-year Treasuries hit multi-year highs.
On the day, the dollar was slightly below the maximum of more than two years reached in the previous session.
From a technical point of view, $2,000 was a key resistance level and slowed the rise in gold prices.
Meanwhile, spot silver fell 0.6% per ounce and platinum fell 1.7% to $974.01 while palladium rose 1.3% to $2,403.
Is it worth buying?
“In February we believed that gold prices were on the verge of a bullish breakout which preceded a rally that tested record highs of $2,078 an ounce. An overbought correction followed and the price found support at $1,900. prices are starting to rise again and we think that indicates higher prices this year.”
“Our measured move targets suggest $2,175 an ounce may still be in sight. A new all-time high will trigger higher upside targets.”
Source: Ambito
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