Gold (XAU/USD) extends losses on Monday to complete a more than 4% depreciation in the last two trading days.
The precious metal has hit $4,268, its lowest price in more than two months, as the safe-haven role has been taken by the US Dollar, which is drawing additional support from higher Treasury yields
Israel and Iran are ramping up their rhetoric after exchanging missile attacks earlier in the day, adding pressure to an already strained ceasefire. US President Donald Trump said that Israel and Iran “must immediately stop shooting,” but investors remain on edge, wary about an all-out war in the region. Meanwhile, the bright US Nonfarm Payrolls data seen on Friday, followed by strong services and manufacturing activity data, released earlier in the week, boosted hopes of Federal Reserve (Fed) rate hikes.
US Treasury yields jumped, and the Dollar rallied across the board, with investors awaiting the release of US Consumer Price Index figures, due on Wednesday, to confirm those views Technical Analysis: Gold breaches the 200-day SMA XAU/USD trades at $4,289, extending a bearish phase after breaching the 200-day SMA, a popular indicator for market analysts, and a self-fulfilling bearish signal. Momentum indicators in the daily chart reinforce the negative tone. The Relative Strength Index (RSI) is hovering near oversold territory around 32, and the Moving Average Convergence Divergence (MACD) line is entrenched below zero, suggesting persistent downside pressure.