Gold Dives After Rebound In Us Bond Yields

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Gold Dives After Rebound In Us Bond Yields

Gold Dives Under $1900 Amid A Rebound In US Bond Yields

After crossing the $19K mark, the Gold prices retreated once again as the selling pressure intensified. According to experts, it was mainly driven by the strength seen in the US bond yields, which are already above 4.3%.

Other than the surge in the US bond yields, the US Dollar is also showing strength which is yet another factor that's weighing heavily on the yellow metal prices.

Sellers Present Near $19K Level

In the last 2 days, Gold prices were acting in accordance with the breakdown from the technical pattern. However, the yellow metal was met with fresh sell orders above the $1900 level. The US Dollar (USD) is also not doing much with its recent strength, which is the reason why the bearish trend in Gold isn't so strong.

Both the Gold as well as the US Dollar have a level playing field. In other words, there's an equal chance for the Gold sellers as well as the buyers.

Now if we look at the reason why the Gold managed to touch $1900, it was mainly due to the correction seen in the USD currency. Similarly, many investors are considering the fact that the Fed may not raise the interest rate anymore.

Since the USD's performance is directly tied to the US economy, we can't ignore the US economic data as well. For starters, the labor market is showing good signs which means the Fed will have more control over the interest rate policy. At the same time, we also have the speech of Jerome Powell who might talk about the recession in the USA as well.

Over all, the bigger picture in terms of the Gold prices is now directly linked with the Jackson Hole, especially the speech of the Fed chair. This will provide guidance about the interest rate policy & thus will have a big impact on yellow metal which is a non-yield asset.

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