Technically, the price cracked below the 100/200 hour MAs at $1535 area and ran lower
The price of gold is getting hammered. The snapshot is showing the price down $34 or -2.21% at $1518.40. Risk off sentiment has sent the price to the downside today.
Technically, looking at the hourly chart, the price moved below its 100 and 200 hour moving averages at the $1535 area, and selling intensified. We are currently down testing the most recent lows at the from August 30 at $1517. The low just reached $1518.07. The 50% retracement of the move up from the August 13 swing low comes in at $1518.55.
A move below this area would look toward the 61.8% retracement at $1509.46. That level is near swing highs going back to August 20.
As I type the price is tumbling even further with a new low being reached at $1515.70.
Also helping the downside today is the sharp rise in treasury yields:
- 2 year 1.570, +13.8 basis points
- 5 year 1.453%, +13.5 basis points
- 10 year 1.584%, +11.8 basis points
- 30 year 2.069%, +10.0 basis points
Looking at the hourly chart of 10 year yields, the yield has moved away from 100/200 hour MAs and above the trend line at 1.5449%. Stay above keeps the bias to the upside.