Gold Is Under Pressure As Treasury Yields Return To Yearly Highs
NEW YORK (May 2) Gold Is Losing Ground At The Start Of The Week
Gold is moving towards the support level at $1880, while Treasury yields are trying to settle above yearly highs.
Treasury yields gained upside momentum in recent trading sessions, which was bearish for gold markets. Currently, the yield of 30-year Treasuries is trying to settle above the psychologically important 3.00% level. In case this attempt is successful, the yield of 30-year Treasuries will move towards the resistance at 3.05%, which will put more pressure on gold.
The recent sell-off in the U.S. stock market did not provide any support to gold, and it looks that gold traders are mostly focused on rising yields.
VanEck Gold Miners ETF moved back below the $35 level and will likely remain under pressure in case gold stays in the $1880 – $1890 range. If gold manages to settle below the support at $1880, GDX may gain significant downside momentum.
FXempire
