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Market News The international gold price outlook is still down to $1853
The international gold price outlook is still down to $1853
On Monday (May 9), the international gold price fell, as the U.S. dollar index continued to hit a new high in nearly 21 and a half years, the dollar-denominated gold became less attractive to holders of other currencies, and the rise in U.S. Treasury yields further suppressed gold prices. The market outlook is still down to $1,853.
2022-05-09
9204
On Monday (May 9), international gold prices fell, as the U.S. dollar index continued to hit a new high in nearly 21 and a half years, the dollar-denominated gold became less attractive to holders of other currencies, and the rise in U.S. Treasury yields further suppressed gold prices. The market outlook is still down to $1,853.
At GMT+8 14:42, spot gold fell 0.63% to $1871.30 per ounce; the main COMEX gold futures contract fell 0.63% to $1871.0 per ounce; the US dollar index rose 0.40% to 104.087.
Investors sought to hold the U.S. dollar, with the U.S. dollar index hitting its highest since mid-December 2002 at 104.107 amid growing concerns about rising interest rates. The 10-year U.S. Treasury yield on Monday rose to its highest level since November 2018, dragging down the price of non-yielding gold.
"A decisive break above 104.00 on the dollar index should be enough for gold to retest support at $1,850 and then $1,835," said Jeffrey Halley, senior analyst at OANDA, adding that continued dollar strength would lead gold back to the $1,800 mark.
"Aggressive rate hikes by the Federal Reserve, accelerated quantitative tightening, a stronger dollar, and a possible easing of the situation in Ukraine are all headwinds for gold prices," ANZ research analysts said in a note.
On the hourly chart, the price of gold started a downward iii wave from $1,910, and the bottom support looked at the 38.2% target of $1,853. On the daily line, wave iii is a sub-wave of the downward (c) wave that started from $1998. The (c) wave is the sub-wave of the downward ((ii)) wave that started from $2070, and the lower support looks at the 85.4% target at $1844.
At GMT+8 14:42, spot gold fell 0.63% to $1871.30 per ounce; the main COMEX gold futures contract fell 0.63% to $1871.0 per ounce; the US dollar index rose 0.40% to 104.087.
Investors sought to hold the U.S. dollar, with the U.S. dollar index hitting its highest since mid-December 2002 at 104.107 amid growing concerns about rising interest rates. The 10-year U.S. Treasury yield on Monday rose to its highest level since November 2018, dragging down the price of non-yielding gold.
"A decisive break above 104.00 on the dollar index should be enough for gold to retest support at $1,850 and then $1,835," said Jeffrey Halley, senior analyst at OANDA, adding that continued dollar strength would lead gold back to the $1,800 mark.
"Aggressive rate hikes by the Federal Reserve, accelerated quantitative tightening, a stronger dollar, and a possible easing of the situation in Ukraine are all headwinds for gold prices," ANZ research analysts said in a note.
On the hourly chart, the price of gold started a downward iii wave from $1,910, and the bottom support looked at the 38.2% target of $1,853. On the daily line, wave iii is a sub-wave of the downward (c) wave that started from $1998. The (c) wave is the sub-wave of the downward ((ii)) wave that started from $2070, and the lower support looks at the 85.4% target at $1844.
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