GOLD & CRUDE OIL TALKING POINTS:
- Gold prices[1] rise as US bond yields, Dollar fall after record debt sale
- Crude oil prices[2] drop, talked down by officials from China and Iran
- Chart setups hint gold may be set to bounce as crude oil suffers losses
Gold prices rose yesterday as the US Dollar[3] retreated alongside Treasury bond yields after hitting a 13-month high intraday. That helped the yellow metal leverage its appeal as an anti-fiat and non-interest bearing alternative. The move came after demand held impressively steady despite a record-setting offering of $26 billion in 10-year notes.
The bid-to-cover ratio registered at 2.55, only a hair lower than the 2.57 reading recorded at the prior sale of comparable paper. Investors seemed to interpret the outcome to mean that the oncoming flood of new issuance needed to finance the widening budget deficit will find healthy take-up. That sent US debt prices higher, trimming baseline borrowing costs.
IRAN, CHINA OFFICIALS TALK DOWN CRUDE OIL PRICES
Crude oil prices fell, suffering the largest drop in a month. The move came as Iran’s foreign minister said some European nations are lobbying for noncompliance with re-imposed US sanctions while Chinese President Xi Jinping urged state-owned energy companies to boost output. Beijing also opted to leave crude off the list of US fuel imports (such as gasoline and propane) to be hit with retaliatory tariffs.
Learn what other traders’ gold buy/sell decisions[4] say about the price trend!
GOLD TECHNICAL ANALYSIS
Gold prices edged above trend line resistance set from mid-June, hinting an upswing may be in the works. The appearance
