Gold plunged nearly 1.50 percent on Friday, retreating from the psychologically significant $4,100 level as the US Dollar mounted a recovery following intervention by Japanese authorities in foreign exchange markets. The Dollar Index hit a 30-day low Thursday after Japan’s currency market action before rebounding sharply, pressuring precious metals lower. Gold is currently trading at $4,045 per ounce as surging US Treasury yields make non-yielding bullion less attractive to investors.
The selloff comes amid heightened currency market volatility triggered by Japan’s FX intervention, which temporarily weakened the Greenback before the reversal. Traders and brokers should monitor whether gold can hold support above the $4,000 psychological barrier, as a break below could accelerate selling pressure. The strengthening Dollar and rising yields create immediate headwinds for gold positions ahead of the weekend.
FXnCO Insight
Monitor the $4,000 support level closely—a decisive break could trigger stop-loss cascades and present short opportunities, while a bounce may offer tactical long entries for mean reversion plays.
Source: FXStreet