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Gold catches a ride as US yields and the dollar fall back

In noting several reactions following the US data releases a short while ago, the one impact of note so far has been another fall in US yields. They had earlier fallen back only to rise again, but now they are dropping to session lows and that is undermining a hitherto rising US currency. This is also playing nicely into the hands of Gold. Earlier today gold fell close to $1,975 per ounce. It has just now risen above $1,990 again as those US yields and the dollar fall back. Naturally, this cannot yet be considered a conclusive move, but more a reactionary one. So, as such it can change if the Fed delivers a hawkish hold this evening. At the same time, there is no guarantee the Fed will do that. So, as the EUR/USD rises a bit further above 1.0550 and the USD/JPY drops below 151 for the first time today, gold is just now trading at $1,990.60

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