Golds downward momentum may prevail in nearterm analyst
U.S. 10year Treasury yields fall to lowest since late February
June 21 Reuters Gold prices gained on Monday, after posting a 6 drop last week, as a retreat in U.S. Treasury yields bolstered the nonyielding metals appeal.
Spot gold climbed 0.7 to 1,775.96 per ounce by 0330 GMT, while U.S. gold futures edged up 0.3 to 1,774.7 per ounce.
The real yields are falling helping gold prices to stabilize and attempt a rebound, said Margaret Yang, a strategist at DailyFX, adding investors are also taking this as an opportunity to buy the dip in view of rising inflationary pressure.
The benchmark U.S. Treasury yields fell to their lowest since late February, reducing the opportunity cost of holding bullion, which pays no return.
Meanwhile, the U.S. dollar held near multimonth peaks against other major currencies on Monday.
Last week, gold posted its worst weekly performance since March 2020 after the U.S. Federal Reserve signalled a soonerthanexpected tightening in its monetary policy.
In the near term, downward momentum may prevail… Immediate support is at 1,770. If this level is broken, then the next support will be at 1,677, Yang said.
Investors would now be watching closely at the comments from several Fed officials who will be speaking this week, including Chair Jerome Powell, who testifies before Congress on Tuesday.
The gold market is probably going to base around here for a little bit to digest this…
