Jump to content
The Twitter Feeds are now back on the Platform ×

Gold (XAU/USD) Slips Lower, Rattled by Soaring US Treasury Yields


MongiIG

Recommended Posts

Gold Price (XAU/USD), Chart, and Analysis

  • UST 2-year yield back above 1%, UST 10-year eyes 1.9%.
  • Gold looks set to move lower.
  • IG client sentiment remains mixed.
Gold (XAU/USD) Slips Lower, Rattled by Soaring US Treasury Yields

US Treasury yields jumped overnight with the interest-rate sensitive 2-year printing a fresh 23-month high of 1.05%, while the benchmark 10-yearhit 1.83%, a level last seen in January 2020. Market expectations that the Federal Reserve will hike rates four times this year, by 25bps each time, and that the central bank will start to pare back the country’s bloated balance sheet sometime later this year, are driving bond yields ever higher ahead of next week’s central bank policy meeting.

For all market-moving data releases and events, check out the DailyFX Calendar

US TREASURY YIELDS VIA INVESTING.COM

Gold (XAU/USD) Slips Lower, Rattled by Soaring US Treasury Yields

The outlook for gold remains mixed to negative with the precious metal expected to remain within a $1,763/oz. to $1,837/oz. Fibonacci range. This multi-week range will likely tighten over the short-term with the Average True Range indicator (ATR) stuck at a near two-year low, highlighting the lack of volatility in the market. The current moving average set-up is also mixed although a bearish ‘death cross’ did form a couple of days ago, adding a layer of bearish sentiment. On the downside, $1,800/oz. guards the January 7 multi-week low at $1,783/oz. ahead of the 50% Fibonacci retracement at $1,763/oz.

GOLD (XAU/USD) DAILY PRICE JANUARY 18, 2022

Gold (XAU/USD) Slips Lower, Rattled by Soaring US Treasury Yields

Retail trader data show

69.26% of traders are net-long with the ratio of traders long to short at 2.25 to 1. The number of traders net-long is 2.79% higher than yesterday and 9.27% lower from last week, while the number of traders net-short is 2.06% higher than yesterday and 1.93% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Gold trading bias.

What is your view on Gold – bullish or bearish?

 

 

Jan 18, 2022 |  Nick Cawley, Strategist. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,697
    • Total Posts
      92,062
    • Total Members
      41,983
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    regalia
    Joined 01/04/23 08:15
  • Posts

    • Hello everyone, i am looking to hold shares long term Apple Tesla in a spreadbetting account just wounded if there is a calculation example Tesla $195.00 1 share = ? ponds per point spread bet. Thanks for any help
    • #USDCAD: Time For PullbackUSDCAD reached a key level.Testing that, the price broke and closed above the resistance line of a falling wedge pattern.I expect a pullback now.Goals: 1.355 / 1.3577  
    • Charting the Markets: 31 March The FTSE 100, DAX 40 and Nasdaq 100 surge higher on a positive outlook as EUR/USD, GBP/USD pause their ascents while USD/JPY continues to rise as the greenback appreciates. WTI remains capped by resistance, gold forms a technical triangle as Robusta coffee trades near six-month highs.   Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 31 March 2023                 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
×
×
  • Create New...