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: Powell pulls markets back up! ๐ EURUSD higher
WTI Crude Plunges Over 2% to Lowest Level Since May
Coffee Futures Soar 5%, Break 400 Cents per Pound
Technical look: Gold falls from the record high๐