Gold prices fell on rising US Treasury yields, preparing to test 2010

Mondo Finance Updated on 2024-02-07

Huitong.com, Feb. 6 (Xinhua) -- It looks set to test the $2010 level, and if it breaks below it, traders will have their eyes set on the 2024 low of 2001Natural support levels of $60 and $2,000.

On Tuesday (February 6), the spot *** rose weakly, rising twice and falling back, rising as high as below $2,030. It is now back in 2024$92, an increase of 0.

The non-farm payrolls data for January rose sharply, and the probability of a rate cut was reduced

The surprise rise in non-farm payrolls data for January sent volatility soaring ahead of the weekend. Employment data showed that 3530,000 new jobs versus 180,000 expected.

Not only that, but a sharp upward revision of December's data shows that January was not an isolated phenomenon, and that the labor market was not only strong, but also strong. In addition, the unemployment rate remained at 37%, down from 38%。

The labor market is a data point that markets are closely watching as restrictive monetary policy appears to have little impact on the job market in the fight to bring inflation down to 2%.

U.S. Treasury yields rose on January non-farm payrolls data

Since last Friday, short-term US Treasury yields have risen sharply, creating headwinds for **. **Reactions to US Treasury yields and the US dollar are often reversed. The chart shows the superposition of *** with the yield on the US two-year Treasury note. This inverse relationship can be seen in the recent sharp rise in yields, which has led to the **of**.

** and the U.S. 2-year Treasury yield (inverse relationship).

Spot ** daily chart and US 2-year Treasury yield chart).

In addition, in an interview with CBS, Powell confirmed that the Fed plans to make three rate cuts in 2024 and downplayed the possibility of March as the first month of rate cuts. Powell also provided some guidance on upcoming inflation data that would hardly need to improve to convince the Fed that rate cuts are appropriate in the coming months.

Gold prices**, weighed down by a stronger dollar

Gold failed to close above the psychological $2,050 mark on Friday, which extended the short-term bearish momentum into the start of the week. An early test on Monday will always be whether gold can break further above the 50-day simple moving average** (SMA), which had already fallen below the 50-day simple moving level** before the end of trading in London.

*It looks set for a test of the $2010 level for now, and if it breaks below it, traders will have their sights set on the 2024 low at 2001Natural support levels of $60 and $2,000. If the weakening continues, the next support is $1985.

At 18:50 Beijing time, the spot ** was reported in 2024$26 an ounce, down 003%。

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