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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

🥇Gold rebounds strongly📈

14:30 20 July 2021

Gold continues to move higher thanks to strong declines in bond yields

The price of gold is trading approximately $ 25 above yesterday's lows. Today's increases are a continuation of yesterday's move, which at the moment resembles a hammer formation. The strong upward move is caused by sharp decline of bond yields. 10-year yields in the US fell below 1.15%. Recently, such levels were recorded in January this year, while the historical lows from July 2020 are located around 0.5%. It is worth noting that in the previous few months, bond yields were significantly higher, which led to a higher cost of debt issuance. At the current levels, the US government will certainly want to increase emissions. In the previous weeks, investors increased the demand for bonds in the secondary market due to a limited number of debt auctions.

Gold is clearly rebounding, mainly due to strong movements in the bond market. This may be partially caused by slightly worse market sentiment, although it is mainly related to high investor demand for US bonds. Gold is approaching a strong resistance zone around $ 1,830 which coincides with the 50-day moving average. Source: xStation5

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