Gold Resilient as Oil Prices Surge Amid Supply Woes

US Treasury yields have risen sharply, putting pressure on gold prices. However, gold has shown remarkable resilience and is not following its traditional logical relationship with US Treasury yields. Adam Turnquist, Chief Technical Strategist at LPL Financial, argues that the gold market remains well-supported and that the correlation between gold, US Treasury yields, and the US dollar is breaking down.

The continued suspension of the Saudi East-West Pipeline and lingering supply-side concerns are supporting U.S. crude oil prices at elevated levels. International oil prices extended their gains on Tuesday, with WTI crude rising above $102 during intraday trading and last trading around $102.35.