Treasury Yields Ease; Gold Remains Near Highs
Gold prices remain firm today following a sharp surge in the previous session. Key support stems from falling US Treasury yields and a weakening dollar, triggered by the US Treasury Department's announcement of increased buybacks for long-term bonds. This policy drove bond prices up and yields down, making non-interest-bearing gold more attractive. Spot gold briefly touched the $4,525 per troy ounce range, its highest level since early June.
However, gold's upside potential is tempered by the hawkish tone of the FOMC minutes. Several Fed officials have kept the door open for interest rate hikes should inflation fail to decline toward the 2% target. Consequently, as long as yields remain low and the dollar stays under pressure, gold's fundamentals remain positive; however, should the market ramp up expectations for a Fed rate hike, gold could face a correction or consolidation following yesterday's major rally. (mrv)*
Gold price at the time of this analysis: $4,498
- Buy if the price moves to $4,503
- Sell if the price moves to $4,493
Resistance 2: $4,543
Resistance 1: $4,516
Support 1: $4,473
Support 2: $4,457
Note: This article is analytical in nature and does not constitute a definitive recommendation. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
