Today one can observe a clear rebound of bond yields. US bonds are leading the way and are significantly cheaper in the last week of January. On the other hand, the sell-off started on January 19 due to a series of mixed data from the US economy and comments from several US bankers which pointed to the need for further raising interest rates, although at a slower pace (25 bp).
Greenback follows rising US yields and with the start of the US session we observe a strong sell-off of gold. Precious metal launched an upward impulse at the end of November, however we observed several downward corrections in the range of $40-45. Assuming that history will repeat itself again, current declines could reach $1795-1790 an ounce, where local lows from January 19 are located. These levels are crucial to maintain an uptrend (higher highs, higher lows). At the same time, the scale of sell-off on EURUSD is not strong enough to indicate the beginning of a new downward trend in gold.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appMoreover, from a speculative perspective, we are seeing an increasing involvement of investors in contracts. An even bigger signal would be generated by a resumption of purchases by ETFs investing in gold, which is not happening so far.

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.