Gold (XAU/USD) Outlook – Will Soaring US Bond Yields Stop Another Attempt at $2k?

Gold (XAU/USD) Evaluation, Costs, and Charts

US bond yields hit contemporary multi-year highs.Gold readying for an additional shot at $2k.

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DailyFX Financial Calendar

The dear metallic made an try to interrupt $2,000/oz. late Friday however was unable to maintain the momentum going for lengthy sufficient. The continued disaster within the Center East stays the driving power behind the latest gold rally as haven patrons enhance the value of the dear metallic. Gold is now consolidating round $1,980/oz. and appears set to re-test massive determine resistance within the coming days regardless of hovering US Treasury yields.

US Treasury yields proceed to push increased, regardless of the Center East battle. US debt usually acts as a flight-to-safety asset class on account of its authorities backing and liquidity. Nevertheless, it appears to be like as if sellers have management of the market at present as yields proceed to press increased. The general public debt of the US is now in extra of $33 trillion and rising US Treasury yields make new borrowing much more costly. In October 2021, the US nationwide debt was $28.9 trillion.

The carefully adopted US 10-year benchmark is now buying and selling with a yield of 5.019%, its highest stage since July 2007. A break above the July 2007 excessive of 5.29% would see yields again at ranges final seen in early 2002.

US 10-12 months Yield Month-to-month Chart

Gold continues to carry out strongly regardless of the combined backdrop. The dear metallic failed on the first try to interrupt $2,000/oz. on the finish of final week and appears set to consolidate earlier than making a contemporary try. A break of $2,000/oz. ought to see $2,009/oz. come into play pretty rapidly. Preliminary help is seen round $1,960/oz.

Gold Day by day Worth Chart – October 23, 2023

Chart through TradingView

IG Retail Dealer information reveals 62.75% of merchants are net-long with the ratio of merchants lengthy to brief at 1.68 to 1.The variety of merchants net-long is 4.47% increased than yesterday and 10.16% decrease from final week, whereas the variety of merchants net-short is 0.25% increased than yesterday and 23.22% increased from final week. We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests Gold costs might proceed to fall.

What’s your view on Gold – bullish or bearish?? You possibly can tell us through the shape on the finish of this piece or you possibly can contact the writer through Twitter @nickcawley1.