Gold trades in the red despite risk-off action in stocks. Stay updated on the latest 5 February Gold Price Technical Forecast to see how the precious metal is trading.
5 February, GKFX – Gold (XAU/USD) finds no takers in Asia despite Friday’s sell-off in the equities and the weakness in the Asian markets.
- Gold under pressure despite risk aversion.
- Rising yields could be hurting the zero-yielding metal.
As of writing, the zero-yielding safe-haven metal is changing hands at $1330 – down 0.30 percent on the day.
US stock markets fell sharply on Friday after the strong wage growth figures and fiscal deficit concerns pushed the 10-year yield well above 2.8 percent; the highest level since 2014. The rising yields spooked investors, leading to a 2.12 percent drop in the S&P 500 index.
Still, the yellow metal is trading in red, possibly because the solid rise in the treasury yields makes the zero-yielding safe-haven metal unattractive.
Ahead in the day, the rising yields could continue to put pressure on the metal. However, worsening of the risk aversion could lift the safe haven metal.
5 February Gold Price Technical Forecast
A break below $1328.99 (Fri’s low) would open doors for $1316.22 (38.2% Fib R of Dec-Jan rally) and $1308.22 (Jan. 10 low). On the higher side, breach of resistance at $1335.29 (23.6% Fib R of Dec-Jan rally) and $1342 (10-day MA) and $1350.13 (Feb. 2 high).
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