Gold looking under 1,700
Gold (XAUUSD) has been extending its yesterday's downtrend and sell-off since the day's early trading hours.
U.S. 10 Year Treasury Note rise by 37basic points to 1.752%, which sent the USD index up to 93.13, gaining about 0.2%. Higher bond Yields continue to add downward pressure on the non-yielding Gold. However, higher inflation risk is like a double-edged knife for Safe-Havens, which Gold is one of the most important of them. Higher Yielded and inflation can send the investors to get rid of cash and buy more precious metals.
While we are waiting for U.S. President Joe Biden's speech on Wednesday, it is expected to see the inflation risks increase again, on expectations of a massive infrastructure spending plan, which he is going to announce.
Continuing the raising the rates will push the U.S. dollar to a higher-level against its crosses and raise the demand for Safe-Haven Dollar.
Technically, Gold's trading under its P.P. at $1,717 strongly supports the downtrend, while S1 at $1,701 can open the doors for more profound prices. $1,690 is S2, where can happened either free-fall or strong rebound. In the rebound, breathing $1,717 will set the $1,728 and then $1,738 in the target.