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Spot Gold Pressured Through Weak Support, Allowing RSI to Unwind

GOLD
  • Pressure on spot gold persists into NY hours, with weak support at $1950 giving way in the past few minutes and putting prices further below the Thursday lows.
  • This leaves $1934.3 as the next downside level (Mar 22 FOMC decision day low), which remains under pressure amid the bear flattening bias in the US curve and the rise in US 10y yields back toward 3.50%. The pullback today has further relieved the technically overbought condition present in the RSI last week.
  • Firmer support is seen headed into $1931.5 - the 38.2% retracement for the February - March upleg, which could come into play should the markets remains calmer after the weekend's SVB/bank support news.

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