Gold Price Reacts to Dollar and Treasury Yield Changes
As the weekend approaches, the gold price stands at a critical juncture, influenced by a strengthening US Dollar and rising Treasury yields.
Despite a week full of market activity, there could be more in store, as non-farm payrolls data is expected later today.
The downgrade of the US sovereign debt credit rating from AAA to AA+ by Fitch triggered a risk-off sentiment in the markets on Tuesday.
Interestingly, this reaction occurred even as Treasury Secretary Janet Yellen criticized the move, deeming it 'arbitrary' and 'outdated'.
Adding to concerns about US debt, the US Department of Treasury announced on Wednesday its plan to issue US$103 billion next week, up from the previous issuance of US$96 billion.
The increasing cost of borrowing for the Treasury has been particularly noticeable in the longer end of the yield curve. This reflects investors' demands for greater rewards in exchange for term risk, given the gradual deterioration of the US government's financial position.
For the first time since November of the previous year, the 10-year note is approaching a 4.20% yield after falling to 4.73% just two weeks ago.
GOLD
BUY LIMIT 1932 - 1934🕯
✅ TP1: 1938
✅ TP2: 1943
❌ SL: 1927
Despite a week full of market activity, there could be more in store, as non-farm payrolls data is expected later today.
The downgrade of the US sovereign debt credit rating from AAA to AA+ by Fitch triggered a risk-off sentiment in the markets on Tuesday.
Interestingly, this reaction occurred even as Treasury Secretary Janet Yellen criticized the move, deeming it 'arbitrary' and 'outdated'.
Adding to concerns about US debt, the US Department of Treasury announced on Wednesday its plan to issue US$103 billion next week, up from the previous issuance of US$96 billion.
The increasing cost of borrowing for the Treasury has been particularly noticeable in the longer end of the yield curve. This reflects investors' demands for greater rewards in exchange for term risk, given the gradual deterioration of the US government's financial position.
For the first time since November of the previous year, the 10-year note is approaching a 4.20% yield after falling to 4.73% just two weeks ago.
GOLD
BUY LIMIT 1932 - 1934🕯 ✅ TP1: 1938
✅ TP2: 1943
❌ SL: 1927
