Gold (XAU/USD) daily chart
There’s no relief for gold as the technical breakdown continues after the drop below $1,900 last week. The fall also took out support from the August lows and leaves a big air pocket between that and the February to March lows near the $1,800 mark.
Even as major central banks have moved to pause mode, the selling in bonds has been unrelenting and that has been a major bane for gold. And so, until bond yields turn the corner and head lower, only then will gold find any real relief.
And from a technical perspective, that might not come any time soon until we reach closer towards the $1,800 level.
But taking into account the structural outlook, especially if rate cuts are set to be in the cards, I reckon that will make such a drop to be a relatively attractive proposition to reengage in gold longs.