Bond yields continue their sharp rise as traders bet on a quick reflation scenario. One of the major victims is Gold – there is a strong negative correlation between yields and Gold prices as we were showing at the last weekly webinar. Gold prices were underpinned by $1765 level for a while but a surge in yields eventually was too much and now we can see prices moving towards the lower limit of a channel with still plenty of room and horizontal $1680 level along the way. Do notice how 50 and 75 LWMAs now work as a resistances – another sign of a possible trend reversal.

Daily summary: Optimism on Wall Street eases again๐ฝUS Dollar drops from recent highs
Coffee futures drop as huge Brazilian shipping to Europe eases supply concerns
Cocoa falls 3% amid improving crops in West Africa
Oil continue the downfall amid rising OPEC production ๐ Saudi Arabia cuts prices