Under Light Pressure As Tsy Yields Tick Higher
The uptick in Tsy yields has filtered into gold prices as the session wears on, with the broader USD a little above worst levels of the day. Spot gold slipped to as low as $1,965.8/oz. before trading back to $1,968.9/oz as of typing, ~$12/oz softer on the day.
- A quick reminder that increased geopolitical tensions surrounding Yemeni Houthi group actions in the Red Sea, coupled with fresh multi-month lows for the BBDXY, offset the impact of the modest uptick in yields seen in Asia/early London hours.
- While the technical trend pattern in gold remains bullish, a clean break of the 50-day EMA ($1,943.4/oz today) would threaten that dynamic and expose the October 16 low ($1,908.3/oz).