The article discusses the impact of elevated US Treasury yields on the price of gold. US Treasury yields are currently near multi-year highs, which has put downward pressure on gold and silver prices. The article mentions that the probability of the US central bank leaving rates unchanged at the next meeting is around 75%. However, the probability drops to around 50% for future meetings. The high bond yields are expected to persist in the near future, making it challenging for gold to rebound.
The article also highlights the recent bearish trend in gold prices, with the precious metal losing nearly 6% of its value since September 20th. The break below the cluster of all three simple moving averages and the failure of prior support levels have accelerated the downward movement. The article identifies the late-February low at $1,805/oz. as the next level of support, followed by the 61.8% Fibonacci retracement level at $1,794/oz. The article mentions that the recent sell-off has pushed the CCI indicator into oversold territory, which may temporarily slow down further losses.
In conclusion, the article emphasizes the negative impact of high US Treasury yields on gold prices. The elevated yields have led to a significant sell-off in gold, and further downward pressure is expected in the near term. Traders and investors will be closely watching US jobs data and a speech by Fed Chair Jerome Powell for insights into the future direction of US government debt.