Gold´s decline reaches the 38.2% retracement of the December/January rally. The bearish potential of the bright metal increases, but break below 1,300.00 needed.
Gold prices are the most stable across the financial world, trading this Friday marginally lower, but within Thursday's range, as the rout in global equities prevents the commodity from plummeting on increased dollar's demand. Spot is currently trading at $1,315.30 a troy ounce, after bottoming for the week yesterday at 1,306.99, its lowest since Jan 4.
Wild swings extend to Treasury yields, which rose ahead of Wall Street's opening toward its recent multi-year highs, but are now down for the day, with the 10-year note yield at 2.81% from 2.85% yesterday, while the 30-year note shed just 1 basis point, currently at 3.13%.
Technical outlook
Spot gold is set to close with losses for a second consecutive week, but the movement seems corrective as the price is just below the 38.2% retracement of its December/January rally, measured from 1,236.43 to 1,34.52 at 1,316.30, suggesting that the decline may be corrective at current levels. Still, further declines that push the price below the 1,3000 threshold will fuel profit taking from the recent rally, resulting in lower lows for the next week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.