Home / News / As yields/USD move higher, gold is falling sharply. The price cracks below it 100 day MA/trendline
As yields/USD move higher, gold is falling sharply. The price cracks below it 100 day MA/trendline
<p>The slightly stronger-than-expected U.S. PPI (5.4% vs 5.3% estimate although the core came is as expected at 4.6% but above 4.3% last month) report has pushed Treasury yields and the U.S. dollar higher. Inflation remains well above the Federal Reserve’s 2% target, the hotter data reminds traders that the Fed may need to keep monetary policy restrictive for longer. </p><p>The U.S. Dollar Index is up 0.31%, while the 10-year Treasury yield has risen 7.4 basis points to 4.911%. That is its highest level since late October 2023.</p><p>Those moves are creating a headwind for gold.</p><p></p><p>The price of gold has moved sharply lower and, in the process, broken below an important cluster of technical support near $4,356. That area includes:</p><ul><li><p>The 100-day moving average</p></li><li><p>An upward-sloping trendline</p></li><li><p>The 200-bar moving average on the four-hour chart</p></li></ul><p>When several technical tools converge near the same price, that area tends to attract greater attention from traders. Buyers previously leaned against the cluster because it offered a clear level against which risk could be defined and limited. With the price now trading below it, however, that former support becomes resistance.</p><p>Stay below $4,356, and the sellers remain more in control. Move back above it, and traders may view the break as a failure. That could disappoint sellers and encourage buyers to reenter.</p><p>The next downside target is the 50% midpoint of the mov
Higher education in Financial Engineering and Money & Capital Markets. SPK (Turkey CMB) licence. 16 years across institutional markets, research, and quant-driven analytics.
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<p>The slightly stronger-than-expected U.S. PPI (5.4% vs 5.3% estimate although the core came is as expected at 4.6% but above 4.3% last month) report has pushed Treasury yields and the U.S. dollar higher. Inflation remains well above the Federal Reserve’s 2% target, the hotter data reminds traders that the Fed may need to keep monetary policy restrictive for longer. </p><p>The U.S. Dollar Index is up 0.31%, while the 10-year Treasury yield has risen 7.4 basis points to 4.911%. That is its highest level since late October 2023.</p><p>Those moves are creating a headwind for gold.</p><p></p><p>The price of gold has moved sharply lower and, in the process, broken below an important cluster of technical support near $4,356. That area includes:</p><ul><li><p>The 100-day moving average</p></li><li><p>An upward-sloping trendline</p></li><li><p>The 200-bar moving average on the four-hour chart</p></li></ul><p>When several technical tools converge near the same price, that area tends to attract greater attention from traders. Buyers previously leaned against the cluster because it offered a clear level against which risk could be defined and limited. With the price now trading below it, however, that former support becomes resistance.</p><p>Stay below $4,356, and the sellers remain more in control. Move back above it, and traders may view the break as a failure. That could disappoint sellers and encourage buyers to reenter.</p><p>The next downside target is the 50% midpoint of the mov
