On October 10, spot gold fell sharply in late Asian trading, giving up all gains in early trading。As of press time, spot gold fell 0% in the day..17%, currently traded in 1858.Near $27 / oz。

Although the outbreak of the Israeli-Palestinian conflict in the last two trading days to boost the safe-haven demand for gold, the dollar index from the high fall is also good for gold prices, but, as bond yields continue to rise, spot gold is expected to continue to suffer strong resistance in the future -To date, two-year U.S. bond yields have exceeded 5%。

U.S. debt has suffered a historic plunge recently as markets expect the Fed to keep restrictive interest rates at higher and longer levels。Statistics show that since March 2020, long-term U.S. debt has fallen 46% and 30-year U.S. bond prices have fallen 53%。While the Fed has done everything it can to raise its benchmark interest rate to its highest level in nearly 20 years, it still can't douse the fiery state of the U.S. labor market。

According to non-farm data released on October 6, the United States added 33 new jobs in September..60,000, significantly higher than market expectations of 170,000 and the previous value of 22.70,000 people。Surprisingly, two industries related to recent strike action - the automotive industry and the healthcare and social assistance industries - saw zero new jobs each..890,000 people and 6.60,000, the negative impact of the representative strike was not reflected in the September data。

On Monday, U.S. Treasury Secretary Janet Yellen said in an interview on the sidelines of the IMF and World Bank annual meetings that the employment data was impressive but not a sign of an overheating labor market.。She said: "It could be a problem if we see an overheated labour market, but I don't see evidence of that.。Yellen also said she was not worried about the recent sell-off in U.S. Treasuries, even though the sell-off has pushed U.S. bond yields to their highest level since 2007.。

Wall Street's confidence in spot gold has faltered despite Yellen's multiple occasions to reassure the market。Legendary investor Dennis Gartman, known as the "king of commodities," said in his latest market commentary: "My enthusiasm for gold has been dampened as GLD has fallen from $190 per share in early May to $170 or nearly $170 per share today.。"

He also revealed that he is currently cutting his position in GLD: "This is finally enough to shake my belief and make me so ignorant that any rally to $173-175 will be sold, with the aim of cutting my position by 1 / 3-1 / 2 of its current size.。"

GLD refers to the SPDR Gold Trust (Gold ETF), an exchange-traded fund (ETF) managed by State Street Global Advisors to track changes in the price of gold.。If Gartman reduces its investment in GLD in its portfolio, it means it is not optimistic about the future market performance of gold.。In fact, with spot gold falling below its 200-day moving average last month, investors are betting on the end of the precious metal's long bull market.。

Looking ahead to the market, Valeria Bednarik, chief analyst at FXStreet, a well-known financial information website, wrote that the gold daily chart shows that technical indicators are beginning to correct the extreme oversold situation, although it has risen, but still stuck in negative territory, failing to suggest that gold prices will see another wave of uptrend.。Meanwhile, gold prices continue to be well below the bearish moving average, with the 20-day simple moving average (SMA) currently posing a dynamic resistance level near $1,884 / oz.。Bednarik added that in the short term, gold prices are more likely to extend upward。According to the gold 4-hour chart, technical indicators maintain a bullish bias near the overbought level, while gold prices remain well above the bullish 20-cycle SMA。Once below 1844.$15 / oz, could signal a fall in gold prices towards the $1830 / oz region。