Is gold in the buying range?

Is gold in the buying range?
Analysis
Ahura Chalki
Author:
Ahura Chalki
Published on: 26.04.2022 09:55 (UTC)
Post reading time: 1.17 min
245

Lower Yields, higher USD, and Market Risk


Market risk is increasing, and US bond yields are falling. Secretary of State Antony Blinken and Secretary of Defense Lloyd Austin met with Ukraine's Foreign Minister and President Zelenski in Kyiv. US emphasis on further support with more military armaments from NATO increases prospects for prolonging the war in Ukraine. 


On the other hand, the nervousness about China's economic slowdown hit by the latest covid19 outbreak increased the pressure on market risk. Yesterday USVIX rose towards 29.55 before easing to 27 earlier today. 


With this news and data, while we are waiting for essential data from the US, including Durable Goods Orders, Yields on the benchmark 10-years treasuries are falling and last seem at 2.85 from 3% seen last week.  


Lower yields after more interest for safe havens to increase the US Dollar and Gold. Gold has been falling last few days, which looks like a technical correction towards its 61.8% Fibonacci at 1,982 US dollars, and now bulls seem to be encouraged and supported at this level. 


While from the fundamental point of view, it is still in demand, and higher numbers will be in the spotlight, technical indicators also remain bullish. While in the Daily chart, MACD histogram is still around 0-level, in the smaller time frames, histograms are moving towards 0 levels from -12. The market volume also is still increasing to increase bullish interests. 


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