- The better tone in the greenback pushes Gold lower.
- The yellow metal records fresh yearly lows and approaches $1,760.
- US Retail Sales surprised to the upside, FOMC Minutes next.
Price action around the ounce troy of Gold remains well into the negative ground for yet another session on Wednesday. In fact, the precious metal decisively breached the previous yearly lows around $1,785 (February 4) and met contention near $1,775 so far in the session.
The sharp move lower in the safe haven metal opens the door to extra weakness in the very near-term at least and now seems to target the November 2020 lows in the $1,760 region per ounce.
Higher US yields continue to lend extra wings to the greenback, in turn keeping the downside pressure on both the precious metal and the risk complex. Indeed, yields of the key US 10-year reference navigate in a firm note and above the 1.30% level, area last visited in February 2020.
The dollar gained extra ground after headline/core Retail Sales crushed estimates in January, expanding more than 5% on a monthly basis. Further data of interest in the US calendar will see Industrial Production figures and the release of the FOMC Minutes.
Gold key levels
As of writing Gold is retreating 0.82% at $1,780.10 and faces the next support at $1,774.19 (2021 low Feb.17) seconded by $1,764.73 (monthly low Nov.30 2020) and then $1,670.88 (monthly low Jun.5 2020). On the upside, a surpass of $1,806.30 (78.6% Fibo of the November-January rally) would expose $1,855.38 (weekly high Feb.10) and finally $1,856.54 (200-day SMA).