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Gold Price Near Multi-Week High Despite Renewed Risk Appetite

Gold Price Near Multi-Week High Despite Renewed Risk Appetite

Nick Cawley, Strategist

Gold (AU)

- Gold trades at a five-week high after sharp rally.

- Risk-on appetite may weigh on the precious metal.

The Traits of Successful Traders and how to find the Number One Mistake Traders Make are just two of the most widely read reports in our Free Trading Guides.

Gold Traders Eye Political Backdrop, Bond Yields for Next Move

Gold traders will be eyeing the coming days with interest to see if the overnight risk-on rally can continue, which would begin to weigh on the price of the precious metal. Asian equity markets rebounded overnight – with the Nikkei ending 2.5%+ higher - while traditional safe-haven currencies including the Swiss Franc and the Japanese Yen fell. Despite this, and with global trade war tensions easing marginally, the price of gold remained firm at a five-week high.

In addition the US Treasury will auction a chunky $94 billion of 2-, 5- and 7-year bonds over the week, alongside a $15 billion 2-year FRN and in excess of $120 billion of short-dated paper. This, along with mildly hawkish Fed speak, could push Treasury yields higher and weigh on the recent gold rally. Two-year USTs yield 2.305% and 10-year USTs yield 2.85%.

Gold Price Chart Three Hour Time Frame (September 5, 2017 – March 27, 2018)

Gold Price Near Multi-Week High Despite Renewed Risk Appetite

Chart by IG

Are you new to Gold or FX trading or are you looking to improve your trading skill sets? We can help you along your journey with a comprehensive range of constantly updated guides and trading tools – they are all Free to Download Here.

What’s your opinion on Gold?Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at nicholas.cawley@ig.com or via Twitter @nickcawley1.

--- Written by Nick Cawley, Analyst

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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