USD is under pressure, Gold "sticks to the bottom" for 3 weeks

Gold prices are currently at $1,936, down $2 from yesterday. The recent downgrade of the US government's credit rating by Fitch has significantly affected investor sentiment. On August 2nd, Fitch downgraded the US credit rating due to worsening financial prospects and increasing public debt burden. This decision has negatively impacted the risk appetite of investors, leading to a decline in global stock markets and oil prices.

However, the increased risk aversion in the market hasn't provided much support for gold. The USD and bond yields have benefited from safe-haven flows, which has suppressed gold. The 10-year bond yield has risen above 4%, while the US Dollar Index is trading at its highest level in 4 weeks, above 102 points. As a result, gold prices have reached their lowest level in 3 weeks and are testing a significant support level.

Comment:

Despite disappointing economic data, gold prices remain unaffected due to continued safe-haven demand, which is benefiting the U.S. dollar. December gold prices are currently at $1,971, down 0.20% on the day. Analysts highlight $1,970 as a crucial support level, with a potential drop to $1,900 if it breaks.

Comment:

🕯 SELL GOLD | 1955 - 1952

🔴 SL: 1960

🟢 TP1: 1942
🟢 TP2: 1932

🕯 BUY GOLD | 1918 - 1915

🔴 SL: 1910

🟢 TP1: 1940
🟢 TP2: 1950

Comment:

After the employment survey was released, the US dollar (DXY index) declined due to falling Treasury yields. At the same time, gold prices increased to $1,940, influenced by changes in fixed-income investments.