The price of gold is taking advantage of a wide retreat in the US Dollar, bouncing back to an important resistance level. However, it seems difficult for gold to continue its recovery due to an increase in US Treasury bond yields. The yield on the benchmark 10-year US Treasury bond is nearing its highest point in 16 years at 4.511%.
Later today, gold traders will be paying attention to the business PMI data from the US, UK, and Euro area to gain insight into the global economy's condition. Major economies are teetering on the edge of recession, so any discouraging PMI reports could lead to risk-aversion and a surge in demand for the safe-haven status of the US Dollar. This would dampen gold's price recovery efforts.
Later today, gold traders will be paying attention to the business PMI data from the US, UK, and Euro area to gain insight into the global economy's condition. Major economies are teetering on the edge of recession, so any discouraging PMI reports could lead to risk-aversion and a surge in demand for the safe-haven status of the US Dollar. This would dampen gold's price recovery efforts.
