Gold News: Gold Price Plunges 2% as Yields Surge and Dollar Strengthens Tuesday

Spot Gold (XAUUSD) is breaking down hard Tuesday and the chart is pointing toward a value zone that traders have been waiting on for weeks. Yields are climbing, the dollar is gaining, and the safe-haven bid is nowhere in sight. Here is what the levels say and what is actually driving this selloff.

Spot gold (XAUUSD) is down sharply on Tuesday after taking out the swing bottom at $4644.46. The move solidifies my assessment that traders aren’t interested in buying strength at current levels, but are looking for value. This means we’re likely headed into the short-term value zone at $4495.33 to $4401.84.

The failure to overcome the 50-day moving average on April 17 when buyers had the chance was the first clue that the market was overpriced. The second was the failure of the swing bottom.

Using the 200-day moving average as our reference, the main trend is up. If you’re looking for a dip then here you go. The short-term range is $4099.12 to $4891.54. Its retracement zone at $4495.33 to