Importantly, the yield of 30-year Treasuries made an attempt to settle above the 5.20% level. The rally in long-term yields shows that investors are worried about the long-term inflation outlook.
It should be noted that European debt markets have also suffered a sell-off today. The yields in Japan tested multi-decade highs. The bond market sentiment is nervous, and it looks that some traders are forced to sell their positions in other markets to cover losses.
Rising yields raised demand for safe-haven assets, which was bullish for the U.S. dollar. Strong dollar is bearish for gold and other dollar-denominated commodities as it makes them more expensive for buyers who have other currencies.
Brent oil prices gained some ground as traders prepared for the potential restart of the military operation against Iran. President Trump warned Iran that he would resume strikes in case the country does not agree to a deal. Rising geopolitical tensions reduced demand for risk assets, which was bearish for gold.
From the technical point of view, gold continues its attempts to settle below the support level at $4530 – $4550. In case gold manages to settle below the $4530 level, it will move towards the next support, which is located in the $4350 – $4370 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
