Outlook on gold prices, in the wake of the latest USD downward spiral and higher Treasury yields.
Key Quotes:
“Gold recovery faces upside test from higher yields
While Mr. Draghi's comments may have been misinterpreted as to the extent or timing of tapering or rate increases, the stronger EUR did help lift gold.
The whipsaw action in the financial markets after ECB officials rushed to clarify Mr. Draghi's comments shows how sensitive monetary officials are to what they may view as overreactions in the financial markets.
Still further EUR gains versus the USD would likely support gold and HSBC forex strategists remain generally bearish on the USD versus the EUR as well against most other currencies.
Gradual USD weakness will likely bolster gold.
Higher yields will constrain further gold gains and while the gold rally has recently come under pressure, we certainty do not believe it is reversed.”
Current Gold Status:
Currently, Gold is trading at 1,246.52,
up +0.08%, having posted a daily high at 1,248.29 and low at 1,243.89.
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