Gold Prices Rise in Asia Amid Bond Market Recovery and Fed Watch

Gold prices in Asian morning trading have climbed following a recent downturn in bond markets. This decrease in Treasury yields has provided a degree of encouragement to investors seeking the allure of this valuable commodity, as stated in a note by ANZ analysts. The relationship between bond yields and gold prices is inverse, with lower yields typically enhancing the attractiveness of this non-interest-bearing metal. This week's spotlight is on the Jackson Hole symposium, where investors eagerly await further insights into the policy direction of the U.S. Federal Reserve. Currently, spot gold is trading 0.2% higher at $1,900.25 per ounce.

XAUUSD BUY STOP 1903 -1905🕯

✅ TP1: 1910
✅ TP2: 1920

⚠️ SL: 1890

Comment:

On Wednesday, gold prices advanced, finding stability near the critical $1,900 threshold, thanks to a minor retreat in the U.S. dollar and Treasury yields. This occurred in anticipation of a gathering of central bankers, expected to offer insights into the outlook for interest rates.

Comment:

* Spot gold witnessed a 0.2% increase, reaching $1,900.30 per ounce as of 0123 GMT, while U.S. gold futures also saw a 0.2% rise, reaching $1,929.40.

* The dollar index (DXY) remained below its two-month highs, while the recent surge in U.S. Treasury yields, which had reached levels not seen in nearly 16 years, temporarily halted, providing some relief to gold, a non-interest-bearing asset.

Comment:

At 0519 GMT, spot gold strengthened by 0.3% to reach $1,902.63 per ounce, extending its recovery from the five-month lows recorded last week. Meanwhile, U.S. gold futures also saw a 0.3% increase, reaching $1,931.70.