Commodities
Gold Stalls at Support as Dollar Hits Yearly Highs
The US dollar has rallied against a broad basket of currencies, testing yearly highs. Despite this strong move, gold markets have not yet reacted, but it may pose a problem for bulls in upcoming trading sessions.
The yield on 10-year Treasuries fell to around 4.80%, while the 30-year Treasury yield settled near 5.60%. This decline in Treasury yields has provided a positive catalyst for gold markets today.
From a technical standpoint, gold is attempting to settle above its support level at $4160-$4180. If it succeeds, it will head towards the next resistance range of $4300-$4320. A move above this level could push gold towards $4400.
If gold falls below $4160, it will open the way for a test of the next support level at $4000-$4020.