Gold initially fell on stronger US Treasury yields while the latest rebound lacks major positives and hence seems tepid, waiting for more clues to convince bears.
US 10-year Treasury yields rise 1.4 basis points to 1.52%, up for the fourth consecutive day, whereas S&P500 Futures showed mild losses at the latest as fresh coronavirus fears from the West challenge the previous optimism that the South African covid variant, dubbed at Omicron, is weaker than the previous strains. Also weighing on the market sentiment and underpinning the US bond coupons, as well as testing the gold bulls, are the chatters over the US-China and Fed rate hikes.
That said, gold prices remain slow as traders will wait for Friday’s US Consumer Price Index (CPI) data to confirm the latest jump in the Fed rate hike expectations. Today, the US will release its Unemployment Claims and 30-y Bond Auction.
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