Gold Price Analysis: XAU/USD now sees key resistance at the former $1,700 support

Gold is losing more than 1% for the second straight day. As FXStreet’s Eren Sengezer notes, XAU/USD could extend its slide unless it manages to reclaim $1,700.

See – Gold Price Analysis: XAU/USD to remain under pressure amid rising US real yields and a strengthening USD – Credit Suisse

Key quotes

“The benchmark 10-year US T-bond yield, which posted gains in the previous three trading days, touched its highest level in more than a year at 1.774% on Tuesday and was last seen rising 2.2% on the day at 1.753%. 1.75% is widely seen as a key level for the 10-year US T-bond yield and a daily close above this point could allow the bullish momentum to remain intact and make it difficult for XAU/USD to erase its losses.”

“In case XAU/USD manages to stage a recovery, the initial resistance is located at $1,700 (psychological level) ahead of $1,720 (20-day SMA). As long as $1,700 resistance continues to hold, a bullish shift is unlikely to occur in the near-term.”

“$1,680 aligns as the first support on the downside. Below that level, a couple of static supports coming from April 2020 could be seen at $1,670 and $1,660.”