XAU/USD Price Analysis: Retreats further from 3-week tops, back near $1570 level
- Gold turns lower sharply amid improving risk sentiment, pickup in the US bond yields.
- Sustained weakness below 50-hour SMA might have prompted some technical selling.
Gold finally broke down of its consolidative trading range held over the past 24-hours or so and dropped to fresh session lows, around the $1572-71 region in the last hour, filling the weekly bullish gap.
A goodish recovery in the global risk sentiment dented demand for traditional safe-haven assets, which coupled with a pickup in the US Treasury bond yields exerted pressure on the non-yielding yellow metal.
Meanwhile, the latest leg of a sudden fall over the past hour or so could further be attributed to some technical selling on a sustained weakness below 50-hour SMA support near the $1576 region.
Oscillators on the 1-hourly chart have been drifting lower within the negative territory and support prospects for an extension of the corrective slide from three-week tops set in the previous session.
However, technical indicators on 4-hourly/daily charts have managed to hold with a bullish bias, warranting some caution for aggressive bearish traders and positioning for any deeper losses.
Gold 1-hourly chart