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Gold slides after Treasury yields rebound from earlier losses
Gold was down 0.7% near $4,490, while 30-year Treasury yields rose to about 5.21% as bond yields recovered.
Gold prices retreated in European trading, falling 0.7% to near $4,490 (XAU/USD) after moving up to an 11-week high of $4,527 earlier in the day. FXStreet attributed the pullback to a rebound in US Treasury yields.
The report said 30-year US Treasury yields were up 0.5% to around 5.21%, and 10-year yields were about 4.67% after trading 0.67% higher. It noted that higher yields on interest-bearing assets can reduce the appeal of gold, which does not pay a yield.
FXStreet also pointed to an earlier shift in bond market expectations following a US Treasury announcement that it would at least double the maximum size of its liquidity-support buyback operations for longer-dated nominal securities. While that initially pressured yields, markets have since staged a recovery, helped by beliefs that higher oil prices could lift inflation projections, alongside wider government debt concerns.
On the technical side, XAU/USD was trading around $4,490.45, holding well above the 20-day exponential moving average near $4,299.17. The piece cited an RSI of 64.6 as staying in positive territory but not reaching the typical overbought level, and said near-term support was seen around $4,490, with deeper support near the $4,299 EMA.
Latest closeGold $4,157.80 ▲0.4%