US 10-year bond yields fell under 3%.
After the ECB meeting, we saw a significant return in the gold chart today. Earlier today, gold at 1,680 USD tested the 15-month low before rising more than 2% from the daily low to 1,715 USD, though any meaningful upside still seems elusive. Besides the ECB decision, USD weakness also helped this situation. USD is still getting weaker as bets for an aggressive 100 bps rate hike are decreasing.
Today and with the hawkish tone of the ECB, recession fears are increasing, which means more risks in the market and increasing safe-haven demands. We could also see the effect of these concerns and fears on the bond markets. Today the US 10-year Treasury yields fell to 2.92%.
After the hawkish ECB, now we have to turn our eyes to the next FED meeting on 26-27 July. For now, what is apparent is that the absence of clues about what is coming up next also confuses the market participants, which again will increase the safe-haven demands, including bonds. If the stock market conditions would be still uncertain and higher risks increase the bond demands and decrease the yields, then we have to expect more demand for gold and higher numbers to come.
From the technical point of view, in the H4 and Daily charts, gold is still in a clear downtrend. In the short-term charts, gold has already changed its direction, and if it can continue the same in the next few days, then we can bet on the trend change, significantly above 1,785.
