“Gold’s pain over the last couple of months has been the rising Treasury yields and now that has pretty much been alleviated,” Edward Moya, senior market analyst at OANDA, told Reuters.
“The current outlook for the global economy is still mixed… You’re going to see a much more cautious approach in the next quarter and that’s probably going to see gold start to see some safe haven flows,” Moya added.
Meanwhile, benchmark 10-year US Treasury yields languished below 1.6%, further reducing the opportunity cost of holding non-interest bearing gold. Bullion got a further lift this week from a subdued Wall Street and also seemed to largely overlook a firmer US dollar, Reuters reports.
The technical scenario for gold has improved since prices broke above key resistance at $1,750, ActivTrades Chief Analyst Carlo Alberto De Casa said in a note, adding any news regarding more monetary stimulus could be seen as a further positive market driver.
(With files from Reuters)
