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Gold breaks streak: uncertainty puts a brake on it amid high US bond yields

Gold breaks streak: uncertainty puts a brake on it amid high US bond yields

Gold is up 15% so far this year, driven by the rally seen in March-April, amid rising inflation expectations, geopolitical tensions in the Middle East and sustained purchases by central banks.

Gold breaks streak: uncertainty puts a brake on it amid high US bond yields

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The gold prices take a pause in their bullish rally this Tuesday, driven by the high yields of US Treasury bondsHowever, the precious metal continues to remain close to its all-time high.

ANDSpot gold falls 0.5%, standing at US$2,370.45 per ounce. This decline occurs after having registered an increase of 1.7% on Monday and having reached a historic peak of US$2,431.29 last Friday.

The 10-year bond yield remains at 4.7%, after hitting a five-month high of 4.7% the previous day. This rise is due to the unexpected increase in retail sales in the United States during March, which led the market to bet on fewer interest rate cuts in the country in 2024.

Gold: what data the market analyzes

“While the long-term correlation between gold and bond returns appears to have faded, it remains influential in the short term,” said independent analyst Ross Norman. “.

Gold is up 15% so far this year, driven by the rally seen in March-April, amid rising inflation expectations, geopolitical tensions in the Middle East and sustained purchases by central banks.

gold

Depositphotos

“This gold rally appears to be far from over. The mystery buyer is demonstrating deep conviction and there is sentiment that new all-time highs will soon be reached. The current lull in the market is a welcome respite as consolidation reinforces what could come next,” Norman added.

Citi analysts expect gold to continue testing and surpassing $2,500 regularly in the second half of 2024, even reaching $3,000 per ounce in the next 6-18 months.

As for other precious metals, spot silver fell 1.9%, standing at $28.33 per ounce; platinum loses 0.3%, trading at $966.60; and palladium falls 2.3%, reaching $1,011.50.

Source: Ambito

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