Gold falls as U.S. yields rise.
Gold under bearish pressure today as the appeal of gold diminished after U.S. Treasury yields rose. U.S. economic growth likely accelerated in the first quarter, fuelled by massive government aid to households and businesses. Gross domestic product increased at a 6.4% annualized rate last quarter, the Commerce Department said on Thursday in its advance estimate of GDP for the first three months of the year. As a result – U.S. Treasury yields advanced to 1.66, increasing the opportunity cost of holding non-interest paying gold. Previously when the U.S. yields have rose up, gold went lower and we’re seeing the same inversely correlated dynamic between gold and U.S. yields today.
Except sellers on upward corrections.
Next support to watch – 1755.00
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