THE EFFECT OF BOND RATES ON SPOT GOLD IS LIMITED
After the manufacturing PMI activities announced in the USA lost some momentum last week, there was depreciation on dollar assets. While the service PMI side showed a slight recovery, we saw that the recovery movement in Spot Gold gained momentum after the dollar entered a relaxation movement again. It is observed that the recovery of data on the Euro Area economy is also effective in the weakness of the dollar. However, it can be said that the rise in the US 10-year bond yields up to 1.40 percent in the new week has suppressed the rise in commodity prices. Especially in this context, it is seen that the precious metal prices returning from the level of 1765 have slowed down a little even if the pricing above the 1800 level occurs.
Spot Gold, which has accelerated its downward trend for a long time, the direction is slightly up in the new week. While the first trading day of the week was quite calm on the US side, the weak image of the dollar seems to have eliminated the effect of the rise in bond yields on Ounce Gold. Another element of this is the increasing expectations for the US stimulus package to come into effect this week. In addition, one of the most important developments of the week for Ounce gold will be the Congress presentation to be made by Powell today and tomorrow.
Especially if the prices settle above the level of 1825 in the intraday session, it can be expected that the increases will enter into a gain in speed within the framework of the 1850 and 1870 resistance levels. However, we are gradually following the 1783 threshold as the first support level and the 1765 threshold below this level, especially if the prices are retesting the 1800 level.