Forex
Gold Stands Firm Amid Rate Hikes and Dollar Rebound
Despite violent rate hikes and a rebound in the US dollar, gold has shown remarkable resilience. The precious metal's correlation with US two-year yields has strengthened to -0.81 over the past fortnight, while its relationship with the DXY sits near -0.68.
The magnitude of gold's response has been anything but ordinary, with bullion hanging tough despite a 12.3bp jump in two-year Treasury yields on September 10 alone. Since 2010, this move ranks among the largest seen over that period.
The $4,283 level remains key support ahead of the US CPI release later Friday. A clean break beneath this level could bring $4,220 into view initially, followed by $4,165.