Gold Drops in Asian Session; Here Are the Key Levels to Watch!
Gold prices turned lower during Asian trading on Tuesday (August 18) after previously strengthening to around US$4,436 per troy ounce. Currently, XAU/USD is trading around US$4,402, down from an opening level of approximately US$4,417. This correction follows gains over the last few sessions; profit-taking emerged after prices failed to sustain momentum within the US$4,420–US$4,430 range.
From a technical perspective, the rejection at the daily high of around US$4,436 indicates that buyers lack the strength to push gold back to retest previous peaks. The decline toward US$4,400 also represents a critical psychological test. As long as this level holds, the correction can be viewed as post-rally consolidation; however, a decisive breakdown could intensify short-term selling pressure.
Fundamentally, gold is facing pressure from rising US bond yields. The 10-year Treasury yield climbed to around 4.73%, while the 30-year yield briefly hit approximately 5.31%—a near two-decade high. Higher yields enhance the appeal of bonds over non-yielding gold, contributing to the metal's loss of momentum during the Asian session.
However, the fundamental outlook for gold has not turned entirely bearish. The US dollar remains near multi-month lows after weak labor, inflation, and retail sales data led the market to price in a roughly 65% probability that the Federal Reserve will hold interest rates steady in September. US-Iran tensions continue to support safe-haven demand following signals of a more offensive military stance from Tehran, although a conflict-driven spike in oil prices could reignite inflation risks and push yields higher.
Newsmaker Analysis: The US$4,400 level is key for today's Asian session. If prices fail to hold and break below this mark, corrective pressure could drive gold toward the US$4,385–US$4,370 range, and potentially down to US$4,350 should selling intensify. Conversely, if buyers can hold the US$4,400 level and push the price back above US$4,420, gold has the potential to test the US$4,436–US$4,450 range. A breakout above US$4,450 would further strengthen bullish momentum. (asd)*
Source: Newsmaker.id
