The price of gold dropped for the second consecutive day on Friday after hitting an all-time high of $2,223 on Thursday. Renewed demand for the greenback amid falling US Treasury bond yields surprised traders and weighed on the yellow metal. At the time of writing, XAU/USD was recently seen trading at around $2,159, losing approximately 0.90%.The Federal Reserve’s March meeting emphasized the need for policymakers to lower interest rates despite the latest two inflation reports suggesting that it´s re-accelerating. This sponsored the XAU/USD duo’s leg up to new all-time highs, but it was short-lived. On Thursday, traders booked profits, triggering a decline of $36 as the yellow metal finished the day with losses of 0.22%.US Treasury yields failed to climb even though the greenback appeared to be soaring on a two-day rally. It gained 0.47% and was up at 104.45 late in Friday’s North American session. The lack of economic data on the calendar seemingly kept the markets slightly calm ahead of the weekend.
Market Movers: Gold Priced Dropped Despite Falling US Yields
Technical Analysis: Gold Traders’ Failure at $2,200 Exposed the $2,180 Mark
From a technical standpoint, the XAU/USD cross was seen consolidating above the $2,150 mark, as it was hovering around that area for the last eleven days. Nevertheless, if sellers were to step in, dragging gold prices below the aforementioned barrier, a fall toward the Dec. 28 high-turned-support at $2,088 could be in the cards.However, on its way down, key support levels must be broken, like the Dec. 4 high, which turned support at $2,146, before challenging the $2,100 figure. On the flip side, if buyers could push prices toward the $2,200 level, that would expose the current all-time high at $2,223 before aiming toward the $2,250 mark.More By This Author:GBP/JPY Price Analysis: Retreats From Nine-Year Peak Below 191.00Silver Price Analysis: XAG/USD Tumbles As Bearish Engulfing Pattern Looms AUD/USD Climbs After Fed’s Decision, Ahead Of Aussie’s Job Data
