Gold Price, Fundamental Daily Forecast – Trading Yields Movement, Dollar

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The 10-year Treasury yield climbs above 1.1% to start the week

The 10-year U.S. Treasury yield jumped above 1.1% on Monday, extending its recent lead on bets that more COVID-19 stimulus is coming.

The benchmark 10-year T-bill yield increased 2 basis points to 1.132%, while the 30-year T-bill yield climbed 2 basis points to 1.892%.

Dollar extends rebound as US yields climb

The US dollar rose slightly across the board on Monday, extending a rebound from the nearly 3-year low reached last week, capitalizing on the recent rise in Treasury yields and the prospect of a bullish blow. increase in growth thanks to a higher US fiscal stimulus.

Usually, the additional spending plans would force investors to worry about rising inflation and its damaging effect on the US dollar in a weak economy, but the currency has been supported in recent weeks thanks to higher yields. Americans.

When the dollar rises, foreign demand for gold denominated in dollars tends to decline.

Short-term outlook

The data is a bit old, but currency speculators remain extremely bearish on the dollar, US Commodity Futures Trading Commission data showed on Friday.

Gold could be crushed if yields skyrocket and dollar bears are encouraged to aggressively hedge positions.

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