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US spot gold shines as US bond yields drop


Gold prices see a recovery, achieving gains of 0.25%, driven by a reversal in US bond yields, with the 10-year note coupon dropping from a 16-year high of 4.51% to 4.44%.


Federal Reserve officials express a cautious stance, emphasizing the need for patience despite the necessity for further rate hikes to control inflation.


The US Dollar Index (DXY) continues to print modest gains, sitting at 105.56, potentially impacting gold’s rally, with Next week, US data includes Consumer Confidence, Durable Goods Orders, and Initial Jobless Claims to provide further direction.


Gold price recovers some ground after hitting a weekly low of $1913.99, though it remains shy of breaking solid resistance at around the 50-day moving average (DMA) at $1929.79. Factors like dropping US T-bond yields and an upbeat market sentiment drive XAU/USD’s price toward the current spot at $1924.56, achieving gains of 0.25%.


Gold price nudges upwards despite a firm US Dollar spot gold price is being driven up by the reversal in US bond yields. The US 10-year benchmark note coupon reversed from a 16-year high of 4.51% towards 4.44%. Consequently, US real yields are edging lower from five basis points from 2.11% to 2.06%.



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