10-year US yields dropped below 1.15% yesterday - the lowest level since February 2021. However, market rates began to rise along with improvement of moods on the global stock markets. 10-year yield recovered to almost 1.25% today and it is putting some pressure on precious metals, like gold. GOLD made an unsuccessful attempt of breaking back above the 38.2% retracement of the May-June correction ($1,814) this morning. Following a failure to break above the $1,814 area, precious metal pulled back below the $1,805 mark. While psychological $1,800 area may offer some support, key support level to watch from technical point of view can be found at 23.6% retracement ($1,790 area).
Recent pick-up in new Covid cases around the world may give central banks an argument to maintain pandemic support schemes, like asset purchases, and therefore may be a positive for gold prices. Tomorrow's monetary policy announcement from ECB may trigger short-term volatility spike on gold.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appSource: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.