Gold Squeezed by Yield-USD
Gold received support from safe-haven demand amid the escalation in Middle East tensions. During the Asian trading session on Tuesday (May 5), gold was around $4,539, but its gains were limited by a persistently strong dollar and rising Treasury yields. The combination of a rising USD and yields typically pressures gold through opportunity cost and currency valuation effects.
The risk of rising oil prices adds to the inflationary channel, which could keep expectations of a tight Fed policy stance, potentially keeping real yields high and limiting gold's upside. The market is now monitoring Fed officials' speeches and the US jobs report (estimated at +60K) as potential triggers for shifts in interest rate expectations, yields, and the direction of the USD. (asd)
Gold Price at the Time of Release of This Analysis is at $4,539
- Buy if the price moves to $4,548
- Sell if the price moves to $4,519
Resistance 2: $4,588
Resistance 1: $4,559
Support 1: $4,501
Support 2: $4,472
Caution: This article is analytical and not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id