Gold Price Analysis: XAU/USD slides under $1800 as real yields surge post-hawkish Fed minutes By Frank_Macro XAUUSD Gold
s to be winning through for now. Spot gold prices have tumbled from Asia Pacific session levels in the $1810 area to current levels around $1790, with on-the-day losses currently standing at just over 1.0%. A late-European morning rebound that saw spot prices rebound from the mid-$1790s to near the $1810 level again ultimately proved nothing more than an intra-day dead-cat bounce and a good opportunity for gold bears to add to short positions.
Selling pressure in gold markets has not come as a surprise to many analysts who observed US real yields, with which gold typically has a tight negative correlation, surging in wake of Wednesday’s Fed minutes. Short-Term Interest Rate markets have busily been bringing forward bets as to when the Fed’s rate-hiking cycle will get underway and how high the bank will ultimately take rates.
For spot gold’s losses to really accelerate, the US dollar is likely going to need to pick up a little more from current levels. The DXY remains locked within the 95.50-96.90ish range that has prevailed now for multiple weeks, despite recent upside in yields and downside in stocks in wake of the hawkish Fed. If the dollar does start kicking higher , that combined with higher real yields could be a big bearish risk for gold.
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