Another day, another downward move for assets that tend to move inversely with bond yields. Gold, silver, Nasdaq - you name it. US 10-year bond yields bounced back to climb north of 4% on Friday.
After everything bounced back in a short-covering rally in the aftermath of a hotter US CPI inflation report on Thursday, gold still closed the session lower. That was a sign of things to come.
Indeed, on Friday, when this was written, the metal started the day lower, and it never really recovered. It was later hurt further by UoM data showing inflation expectations were on the rise. Bad news if you were hoping for a dovish pivot by the Fed.
Gold's inability to hold above the 2021 low at $1676 means the path of least resistance remains to the downside, which should encourage technical selling.
At the time of writing, the metal was trying to break short-term support around $1650 area. It looked like the metal was about to drop towards the recent lows at $1615ish.
After everything bounced back in a short-covering rally in the aftermath of a hotter US CPI inflation report on Thursday, gold still closed the session lower. That was a sign of things to come.
Indeed, on Friday, when this was written, the metal started the day lower, and it never really recovered. It was later hurt further by UoM data showing inflation expectations were on the rise. Bad news if you were hoping for a dovish pivot by the Fed.
Gold's inability to hold above the 2021 low at $1676 means the path of least resistance remains to the downside, which should encourage technical selling.
At the time of writing, the metal was trying to break short-term support around $1650 area. It looked like the metal was about to drop towards the recent lows at $1615ish.