US 10Y bond yield reached 1.33% level ahead of Fed minutes which will be released at 7:00 pm BST. Market participants expect the Fed to maintain its dovish position in the coming months, which may potentially be confirmed by the notes from the last US central bank meeting. The fall in yields should theoretically work against the dollar and positively for gold. Today we see gold returning above $ 1,800 an ounce. The clear decline in bond yields can be illustrated by the strong increase of TNOTE. As one can see, the local high from May is being tested. If this level is broken, TNOTE will reach the highest level since the beginning of March.
TNOTE bounces back, as investors expect a dovish narrative of today's Fed minutes. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Bond yields fell at one point to 1.33%, which is the lowest level since February. This supports gold, which returns above $ 1,800 per ounce (reverse axis). Source: Bloomberg
