Yahoo Finance Gold Prices Tumble as US Yields Surge to 1-year High
Gold prices tumbled on Thursday as U.S. Treasury yields surged. The rally in Treasury yields accelerated higher as yields on the 10-year treasury moved above 1.5% for the first time since February. The dollar moved lower, but most of the focus was on the yield curve, which continued to flatten. Stronger than expected US jobless claims helped buoy U.S. yields.
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Technical analysis
Gold prices tumbled on Thursday, testing support near an upward sloping trend line that comes in near 1,765. A break of this level would lead to a test of the June lows at 1,670. Resistance is seen near the 10-day moving average at 1,796. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum flip-flopped and turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices.
Jobless Claims Drop More than Expected
According to the Department of Labor, the number of individuals filing first-time claims for state unemployment benefits fell sharply last week, with a total of 730,000 new claims for the week ended February 20. Continuing claims also fell, decreasing 101,000 to 4.42 million, the lowest since March 21.
This article was originally posted on FX Empire
