The gold price is declining, triggering a new bearish signal
The US dollar rebound continues to reach new highs in 2023. Prices have consecutively broken through levels of 105.78, 106.00, and 106.5 since Monday, and the bullish trend appears to be accelerating.
The 10-year Treasury bond yield has surged to a 16-year high
The root of this move lies in the Federal Open Market Committee (FOMC) rate decision last week: it revised expectations for interest rate cuts next year, reducing them from four cuts to two. This underscores the theme of rising yields and a stronger US dollar.
As a result, gold is weakening as the US dollar continues to strengthen, with the US dollar index testing multi-month lows. US Treasury bond yields are testing new highs, which is bearish for the gold market.
If the gold price falls below the $1875 level, it will move towards the next support level at $1850. This also marks the completion of a 5-3 downward pattern for gold.
The 10-year Treasury bond yield has surged to a 16-year high
As a result, gold is weakening as the US dollar continues to strengthen, with the US dollar index testing multi-month lows. US Treasury bond yields are testing new highs, which is bearish for the gold market.
If the gold price falls below the $1875 level, it will move towards the next support level at $1850. This also marks the completion of a 5-3 downward pattern for gold.