Higher yields, higher dollar contributing to golds fall
The price of gold is tumbling lower on the back of higher yields/higher dollar. The price is currently down around $-39.23 or -2.17% at $1765.35.
The move has now taken the price below the 61.8% retracement of the trading range since the March low. That level comes in at $1768.44. The July low at $1750.78 becomes the next key downside target.
The price of crude oil has also now moved into negative territory with the front contract trading at $68.74 down $0.38 a -0.54%. There is no headline news. Stronger growth from strong job should lead to stronger demand for crude oil. However, the higher dollar may be a negative influence as might higher rates as well. The 10 year yield is up to 1.285%, up around seven basis points on the day.
Looking at the daily chart, the crude oil still remains above its 100 day moving average at $67.19. Move below that moving average and stay below would be more bearish for the crude complex.