0
0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-faces-headwinds-as-rising-treasury-yields-weigh-on-price-outlook/
Gold traders encountered a setback last week as prices reversed from the $2726 mark, rejecting the highs from late November.
With the start of a new trading week, market conditions have calmed, though traders are largely holding off on new positions ahead of key developments in the US Treasury market.
The recent uptick in US 10-year real rates, which have risen above 2%, alongside a 24 basis point increase in nominal US Treasury yields last week, suggests that gold will continue to take its cues from Treasury market movements. If the selling pressure persists and market sentiment shifts towards a potential breakout above the 4.50% yield level, gold could be on track to test former support levels near $2613, or even the 100-day moving average at $2600, a key indicator that has defined the bull trend throughout 2024.
While gold’s correlation with the US dollar and Treasuries has been inconsistent in 2024, the sharp rise in yields last week has left little room for gold to resist the pressure. The increase in Treasury yields has prompted traders to trim their long positions, a trend likely to continue given the slew of important US data and the Federal Reserve meeting scheduled for this week. The outcome of these events will likely reverberate across markets, with both gold traders and participants in equities and foreign exchange markets closely watching for any further rise in Treasury yields that could influence broader market dynamics.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-faces-headwinds-as-rising-treasury-yields-weigh-on-price-outlook/
