XAU/USD jumps towards $1850 as US yields fall on risk aversion

  • Gold climbs to its highest level in four days at $1850.
  • Silver erases losses and nears Wednesday’s high near $21.90.
  • US yields slide as demand for Treasuries strengthens amid risk aversion.

Gold gained momentum, driven by a context of risk aversion and a weaker US dollar. XAU/USD surged from below $1820 to the $1850 area.

Stocks are falling sharply on Wall Street. The Dow Jones loses 2.50% while the Nasdaq falls more than 4%. Recession concerns are driving prices down. At the same time, demand for safe-haven assets boosted government bonds. The US 10-year Treasury yield fell to 3.32% from 3.49%.

The US dollar is falling against its G10 rivals, particularly against the Swiss franc and yen. DXY falls 0.90% and trades below 105.00.

The combination of lower yields and a weaker dollar pushed XAU/USD higher. The yellow metal is trading at $1,846, its highest since Monday, and is looking towards $1,850. A break to the upside could open the doors to more gains.

XAG/USD also hit a multi-day high at $21.89. Earlier Thursday, bottom at $21.35. On the contrary, cryptocurrencies remain under pressure. Bitcoin continues to trade dangerously close to the $20,000 level.

Technical Levels

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