Gold rises after U.S. Treasury yields stabilise.
Gold rose nearly 2% today, as it gained respite from a retreat in U.S. Treasury yields and broader dollar weakness. U.S. 10-year Treasury yields fell as low as 1.5230%, down for a second day and off last week’s high of 1.6250% – prompting the “knee-jerk” repositioning reaction of the money managers into more riskier assets in search for the more significant gains elsewhere – benefiting risker currencies like Australian dollar and Kiwi and ultimately benefiting precious metals – gold and platinum. The technical buying off the key long-term support level 1674.00 also helped support gold prices.
Expect buyers on downward corrections.
Next resistance to watch – 1723.00
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