This 20 April Gold Price Technical Analysis shows that the yellow metal has faded spike to $1,354 yesterday as the rise in the treasury yields put a bid under the US dollar. Meanwhile, how is the dollar index trading?
20 April, GKFX – As of writing, the yellow metal is changing hands at $1,342/Oz, representing a 0.30 percent drop on the day. Meanwhile, the dollar index (DXY) has hit an 11-day high of 89.74.
Treasury yields spike
The US two-year treasury yield rose above 2.4 percent yesterday and extended gains further to 2.44 percent in Asia – its highest level since September 2008. Further, the 10-year treasury yield moved above 2.9 percent and looks set to scale the 3 percent mark soon.
Hence, the dollar may remain well bid against the zero-yielding safe haven yellow metal.
20 April Gold Price Technical Analysis
The bull flag breakout (close above $1,350) pattern has failed twice in the last ten days. So, the emboldened bears may push the metal down to $1,337 (ascending trendline support). A violation there would expose support lined up at $1,331 (50-day MA) and $1,329 (100-day MA).
On the higher side, the key levels to watch out for are: $1,355 (weekly high), $1,357 (March 27 high) and $$1,365 (April 11 high).
This article 20 April Gold Price Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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