Falling 2-Year Yields Boost Gold
Falling U.S. 2-year yields are contributing to the upward momentum in gold prices.
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
"The next leg of the rally could come from a shift in the Fed's stance towards rate cuts, a weaker US dollar or signs of an economic slowdown. Continued central bank buying, renewed geopolitical tensions and a technical breakout above key resistance levels could also provide fresh momentum for gold and silver."
"Falling oil prices may help ease inflationary pressures around the world, raising expectations of lower interest rates, experts said, which is usually good for gold as it does not pay yields and does well in a low-rate environment."
"Even gold, which has been one of the investment world’s worst losers through the war, rose. It climbed 3.4% to settle at $4,552.30 per ounce."
"Gold and silver prices rose as US Treasury bond yields fell after data showed December retail sales growth stalled, signalling a softening economy ahead of key jobs data."
"The broader intraday structure suggests that the recent pullback is corrective in nature, and a continuation of the up-move remains likely if prices sustain above the breakout zone."
"Traders anticipate two Fed interest rate cuts this year. A low-interest-rate environment, geopolitical and economic uncertainty traditionally favour non-yielding assets such as gold."
"A combination of market expectations of lower interest rates in the US and growing geopolitical frictions has underpinned support from precious metals."
"Gold prices have surged roughly 80% this year — its steepest annual rise since 1979 — fueled by US interest rate cuts, expectations of further monetary easing."
"A weaker US dollar, easing bond yields, and heightened uncertainty in global markets continued to support the rally in the yellow metal."
"The Federal Reserve’s expected policy easing in 2025 is adding momentum to metals."