CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.

US bond yields are rising, gold fell sharply after Yellen comments

18:08 4 May 2021

Over the last two hours, the US bond yields rebounded from around 1.56% to nearly 1.60% (thus the prices of these bonds fell). The increase in bond yields contributed to a sharp decline in gold prices - we have already mentioned the relationship between yields and gold many times in our posts.

The decline in US bond prices (and thus the gold sell-off) was probably caused by Janet Yellen comments, who suggested that there may be a need to raise interest rates in order to prevent overheating of the economy. The US Treasury Secretary presented a different point of view compared to the Fed. It should be remembered that any comments that even slightly suggest the earlier tightening of the US monetary policy may lead to further increases in bond yields and lower gold prices.

US Treasury bond yields rise (and their prices fall) and gold prices plummet. Source: xStation5

The price of gold fell below the lower bound of the wedge formation and below the 50 SMA (green line). The nearest support is located around $1,758/oz. Source: xStation5

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back