Gold Resists Repricing Shock Amid Treasury Turmoil
Gold has shown remarkable resilience in the face of extreme front-end Treasury repricing and a rebounding US dollar. Despite a 12.3bp jump in two-year Treasury yields on September 10, gold prices have held firm, with its correlation with US two-year yields reaching -0.81 over the past ten days.
The price remains in a downtrend from late August highs, but has been coiling around the key support zone of $4,283, which has repeatedly absorbed selling since early August.
Crude oil prices are another wild card, with a potential decline potentially providing some breathing space for gold. The US inflation report due later on Friday will also be closely watched, as it may shift expectations for next week's Fed decision and impact front-end yields and the US dollar.