(Kitco News) - Despite the recent selling pressure, analysts note that the gold market is holding up remarkably well, given that bond yields have risen to a fresh 15-year high.
Overnight, the yield on U.S. 10-year bonds pushed to 4.36%, its highest level since late 2007. Analysts note that the rise in bond yields is negative for gold as it increases the precious metal’s opportunity costs as a non-yielding asset.
Some analysts have said that gold could benefit significantly if those rising bond yields indicate a crisis of confidence in U.S. debt. However, many analysts have noted that the weakness in U.S. bonds appears orderly and a natural reaction as the Federal Reserve is expected to maintain its aggressive interest rate hikes.
“Physical interest in Gold has kicked up considerably across various hubs at a time that fast money is running rather short,” she said. “Liquidity, or lack thereof, is compounding general August moves more so than in the past. It’s tough to convincingly read into short-term reactions in a month where volumes are light for any reliable signal, and vols across most asset classes are low. There‘s concerns over liquidity issues of the Treasury market – the MOVE index has already started to rear up.
Some analysts have said that although yields can move higher in the near-term, an end to the central bank’s tightening cycle should eventually cap them.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Gold, silver see price gains on short covering(Kitco News) - Gold and silver prices are firmer in early U.S. trading Monday, with gold poking to another five-month low in overnight trading.
Lire la suite »
Gold Market Analysis for August 21 - Key Intra-day Price Entry Levels for Active Traders(Kitco News) - This 5-minute bar chart for Comex gold futures can be a valuable analytical and trading tool for the active intra-day gold futures trader/market watcher.
Lire la suite »
Gold Market Analysis for August 22 - Key Intra-day Price Entry Levels for Active Traders(Kitco News) - This 5-minute bar chart for Comex gold futures can be a valuable analytical and trading tool for the active intra-day gold futures trader/market watcher.
Lire la suite »
Gold SWOT: Asian ETFs bought $132 million of gold in July(Kitco commentary) - The best performing precious metal for the week was silver, up just 0.19%. Lab-grown diamond trade data indicates that it continues to gain market share
Lire la suite »
Crypto SWOT: Investors added $49.3 million to crypto-focused exchange traded products in the past monthKitco News' contributed commentary features articles and opinions from some of the top experts in the gold industry.
Lire la suite »
Gold bulls will need to stay patient for a little while longer(Kitco News) - Fundamentals, positioning, sentiment, and technical analysis all point to a further delay in gold’s big move upward, according to Chris Yates of Acheron Insights.
Lire la suite »