Gold holds even as US yields rise

An update here yesterday noted how gold had found fresh buyers underneath the $2,600 handle and rebounded from a low at $2,589.77. The metal had rebounded back above $2,615 at the time of that update, but it could not extend much further on the topside and fell back again, dropping once more below $2,600. That update also noted how any rebound below 2,643 might be inconclusive. Gold later closed in the US at $2,598.39. It has traded as low as $2,597.73 so far today and managed to rebound above 2,610 since. However, it is rather an uncertain outlook this morning and the one thing that is clearly hampering a more protracted rebound seems to rest with US treasury yields. Those are higher again today. The 10 year note is now nudging 4.45% and that also explains why the USD/JPY has pushed above the 155 handle this morning. The increased cost of carry is a hindrance to gold, but at the same time the European and US stock market relapses are a supporting factor. So, it looks rather in the balance, as to which it going to win out today. Gold is currently trading at $2,605.70