- Gold is under pressure as US yields jump after US data.
- US Q3 GDP was revised from 2.9% to 3.2%.
- Wall Street extends losses, US Dollar soars.
Gold prices dropped sharply from nearly $1,820, reaching levels under $1,800 following the release of US economic reports.
Looking for Santa’s rally
Economic data released in the US showed the economy expanded at an annualized rate of 3.2% during the third quarter, above the 2.9% of the previous estimate. Price indicators were also revised higher.
Following the numbers, US yields jumped. The US 10-year yield rose from 3.64% to 3.67% while the US 2-year yield soared from 4.20% to 4.26%. The move in the bond market weighed on XAU/USD that sank. At the same time, equity prices in Wall Street extended losses. As of writing, the Dow Jones is losing 0.93% and the SP& 500 drops by 1.24%.
Gold bottomed at $1,798, the lowest level in two days. It is hovering around $1,800 far from the recent high of $1,824. The correction is taking place after the yellow metal was unable to consolidate above the $1,820 area. A daily close above, should open the doors to more gains.