Update on gold price on the first day of the week

Hello traders, currently the price of gold today on August 21st continues to decline and reached a level of 1891 due to the increase in the US dollar and bond yields. The main reason is that gold is under pressure from the yield of US Treasury bonds and the increasing USD index. The yield on 10-year US Treasury bonds reached its highest level in 15 years. The USD index recorded its highest level in 9 weeks, closing at 103 points.

Therefore, bond yields are increasing due to the possibility that the Federal Reserve (Fed) will maintain high interest rates as they are now, not to mention that Fed may continue to raise interest rates in September. This creates a challenging environment for gold, which means that it will be difficult for gold prices to rise in the near future.

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In this case, the $1,800-1,810 USD/ounce range is a potential technical target. This has been a difficult range for gold to cross over the past 3 years.

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good luck everyone

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He also maintains a long-term bullish outlook for gold but sees a downside risk this week, said Ole Hansen, head of commodity strategy at Saxo Bank.

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The price of gold this week is still a mystery, many investors are hoping that the real gold price will not surpass the price mark of 1880 USD.

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The market received some support when the USD Index experienced a slight decrease of 0.1%. However, US 10-year yields continued their upward trend and reached 4.3439%, marking their highest level since October.

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Investors' focus this week will be Fed Chairman Jerome Powell's speech on Friday, when central bank governors around the world gather in Jackson Hole to attend. Annual conference.

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On August 25, Fed Chairman Jerome Powell will give a speech giving his views on the Fed's monetary policy in the near future.

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Short-term Treasuries currently offer yields around 5%, which is significant competition for gold.