Gold prices are due to the high US Treasury yields for several decades

Today we will be going over gold price analysis, price and chart

For one-month US bond yields, which are testing their highest levels in several decades.

Content

Gold and its relationship to US Treasury bonds

gold movement

Gold and its relationship to US Treasury bonds

Concerns that ongoing debt discussions may be too late

And that the vision of the United States is heading towards a technical default

It continues to push short-term US Treasury yields to levels not seen in decades.

The 1-month US Treasury note is now trading at a yield of around 5.65%.

Where investors demand more for their money during the negotiation period.

Talks between President Joe Biden and House Speaker Kevin McCarthy haven’t generated much interest

So far though both sides have said the ongoing talks are fruitful,

While President Biden added that default was “off the table.”

Recent comments by Treasury Secretary Janet Yellen that if a deal is not reached by early June,

It is very likely that debt defaults will continue to rock the market.

month US Treasury bill yield – daily rates chart

gold movement

While gold is currently struggling with high US bond yields, prior to this week,

Starting later today, there are a few US economic releases of high importance

And events that gold traders should take into account.

It is supposed to give the minutes of the recent FOMC meeting

This evening more details of what was discussed in the last meeting,

On Thursday, the second reading of US GDP for the second quarter will be released.

On Friday, the Fed’s preferred measure of inflation,

The core PCE index will be released at 12:20 GMT

Ahead of the release of Michigan’s final consumer confidence report for May.

Gold remains near a multi-week low of $1952 an ounce.

It may retest this level if US bond yields rise further.

Selling off May 4 highs of $2081 an ounce.

Relentlessly with little in the way of any sustained bounce seen.

If gold is going to go higher, the resistance is from the 20- and 50-day moving averages,

at $1,993/0z. and 2001 dollars/oz.

You will need to bring it out convincingly.

Daily Gold Price Chart – May 15, 2023

Some analyzes of gold

Retailers remain for the long haul

Retail trader data shows that 65.63% of traders hold net long positions along with the percentage of traders

who take long positions to yellow at 1.91 to 1,

While the number of traders taking long positions decreased by 1.65% compared to yesterday

and 0.33% lower than last week.

Traders’ net short positions were 3.87% higher than yesterday and down 6.57% from last week.

We usually take a view conflicting with the sentiment of the masses,

The fact that traders are holding on indicates that gold prices may continue to drop.

Positioning is less net buying than yesterday but more net buying than last week.

The combination of current sentiment and recent changes gives us more of a mixed bias in gold trading.

artıcle name Gold prices are due to the high

Gold prices are due to the high

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