Gold News: Prices Move Higher Despite Rising Treasury Yields

Gold Gains Ground Ahead Of PPI Report

The price of gold is moving towards the $2650 level as traders ignore rising Treasury yields.

The yield of 2-year Treasuries moved back above the 3.98% level, but this move did not put any pressure on gold markets. U.S. dollar remains close to multi-week highs, but demand for gold stays strong.

The higher-than-expected U.S. inflation data, which was released on Thursday, did not serve as a negative catalyst for gold markets. While traders prepare for a less dovish Fed, they stay focused on the upcoming rate cuts from the world’s leading central banks. These rate cuts should boost liquidity in the markets and provide material support for precious metals.

It looks that demand for safe-haven assets is rising ahead of the weekend, which is bullish for gold. Traders are waiting for Israel’s retaliation against Iran.

Today, traders will also focus on U.S. Producer Prices report. Analysts expect that PPI increased by 0.1% month-over-month in September, while Core PPI grew by 0.2%. It remains to be seen whether this report will have a major impact on gold market dynamics as commodity traders have mostly ignored the higher-than-expected CPI data.

Technical Analysis

Gold is trying to settle above the $2640 level amid rising demand for precious metals ahead of the weekend. In case this attempt is successful, gold will head towards $2650. A move above $2650 will push gold towards the significant resistance level, which is located at all-time highs at $2675 – $2685.

On the support side, a move below $2620 will push gold towards the support level at $2580 – $2590. A successful test of the support at $2580 – $2590 will be a worrisome development for the bulls as it will signal that the near-term trend has changed.

For a look at all of today’s economic events, check out our economic calendar.