Gold price retains inverse relationship with US yields
The price of gold pulls back from a fresh monthly high ($1915) as US Treasury yields recover following the failure of Silicon Valley Bank (SVB).
The correlation coefficient with the 10-Year yield currently stands at -0.81, with bullion more than 4% higher from the start of the year.
Gold Price Outlook
The recent rally in bullion takes shape following the failed attempt to test the February low ($1805), and the precious metal may try to track the positive slope in the 50-Day SMA ($1873) as it trades back above the moving average.
Keep in mind, correlation is not causation, but swings in US yields may continue to have implications for gold prices as the correlation coefficient approaches -1.0.
The break above the monthly opening range may push the price of gold towards $1937 (38.2% Fibonacci extension), with a move above the February high ($1960) opening up the $1977 (50% Fibonacci extension) region.
However, failure to extend the recent series of higher highs and lows may keep the price of gold within the February range.
The correlation coefficient with the 10-Year yield currently stands at -0.81, with bullion more than 4% higher from the start of the year.
Gold Price Outlook
The recent rally in bullion takes shape following the failed attempt to test the February low ($1805), and the precious metal may try to track the positive slope in the 50-Day SMA ($1873) as it trades back above the moving average.
Keep in mind, correlation is not causation, but swings in US yields may continue to have implications for gold prices as the correlation coefficient approaches -1.0.
The break above the monthly opening range may push the price of gold towards $1937 (38.2% Fibonacci extension), with a move above the February high ($1960) opening up the $1977 (50% Fibonacci extension) region.
However, failure to extend the recent series of higher highs and lows may keep the price of gold within the February range.
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