U.S. Treasury yields remained pretty flat on Wednesday after stronger than expected retail sales data, with 10-year yields rising to just 4.341%. However, following the sharp sales last week, recent downward pressure on yields reflects growing concern among investors. China, which owns a $760 billion Treasury department, will be able to quietly offload US debt, so China will last. This is added to the gold case as investors hedge hedge against potential instability in the bond market.
Retail data is resilient, but hidden by trade risks
Despite bright marching retail sales, which rose 1.4% against 1.2% forecast, the trade war narrative continues to dominate emotions. Continuing tariff consultations, including scheduled discussions between the US and Japan, will keep geopolitical risks at the forefront and center for traders.
Market forecast: bullish gold outlook exceeds $3,137
Gold’s bullish momentum remains intact as long as it surpasses the new pivot at $3,137.91. Strong buyer interest and safe demand suggest that any modifications are shallow.
Currently, metals are trading above critical psychological levels, so traders are keeping their focus on potential targets at $3,400 and $3,500. Aside from a resolution of trade tensions or a dramatic reversal of the dollar, gold prices are expected to remain a positive bias.
