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Gold Weekly Forecast: 200-day SMA last line of defense for XAU/USD ahead of $1,800ANALYSIS |
1/8/2021 6:14:13 PM GMT
XAU/USD lost nearly 3% on a weekly basis.
USD gathered strength supported by surging US T-bond yields.
Gold could post additional losses with a daily close below $1,840.
The XAU/USD pair started the new year on a firm footing and rose more than 2% on the first trading day of 2021. The pair preserved its bullish momentum during the first half of the week and touched its highest level in nearly two months at $1,959 on Wednesday. However, gold staged a sharp U-turn and closed the week with heavy losses below $1,850 as the sharp decline amid rising US Treasury bond yields dragged the price below key support levels and triggered additional technical selloffs.