24 November 2023
Gold is showing strength in a quiet market, poised to re-test the $2,000/oz. level and its recent high near $2,010/oz. Despite rising U.S. government bond yields, gold maintains its position, though low trading volumes may be influencing market dynamics. Today’s flash S&P PMIs release could introduce some volatility, but overall market activity is expected to stay subdued until next week. Meanwhile, U.S. Treasury bond yields are climbing, with the 2-year yield now at 4.95%, ahead of significant short- to medium-term Treasury auctions totaling $148 billion next week. This upward trend in yields suggests a favorable environment for gold as traders seek value amid these bond market movements.