Macro Headwinds Weigh on Commodities as Gold Shows Unexpected Resilience

The macroeconomic landscape has become increasingly challenging for commodities due to rising Treasury yields and a stronger US dollar. The US 10-year yield has reached its highest level in 19 years, exceeding 5.2%, while the real yield has surpassed 2.88%, its highest since 2008.

Despite these headwinds, gold, silver, and platinum have only experienced moderate weekly declines. Gold traded lower on the week but showed resilience considering the hostile macro backdrop, with ETF holdings rising for a tenth consecutive week to 3,133 tonnes.

The current price action will determine which force dominates: higher yields or underlying demand. A break below $4,235 could expose the market to a deeper correction and potentially renewed focus on the June-July area around $4,000.

Oil prices have been volatile due to conflicting supply, geopolitical, and diplomatic developments in New York. Despite increased flows through Hormuz and the restart of Saudi Arabia's East-West pipeline, Brent remains above $100.