US Treasury yields have fallen sharply, dragging gold prices up

2 ago

Gold prices rose more than 1.0% on Thursday, helped by a sharp decline in US Treasury yields after the release of US labor market data. Specifically, the number of jobless claims in the second week of November rose more than expected, reaching 231,000, higher than the forecast of 220,000. The number of people receiving unemployment benefits also surprised by rising to 1,865,000 - the highest in nearly two years, showing the difficulty of the US labor market. Weak economic data, along with CPI and PPI data released earlier in the week, reinforced the view that the Fed's rate-hiking cycle is over. This has had a strong impact on US Treasury yields, causing the 10-year Treasury yield to fall below 4.45%, approaching its lowest level since late September.

With the market expecting the Fed to gradually ease monetary policy, gold prices could maintain an upward trend in the short term. This scenario will be confirmed if US economic data continues to weaken.