- Gold tries to return above $1730, remains under pressure.
- Treasury bond yields up modestly.
- Operators with the focus on the US inflation data.
Gold is rising modestly on Wednesday ahead of the key US inflation report for June. Hours ago, XAU/USD fell to $1,722.45, the lowest level since September 2021.
tense calm
In general, financial markets are trading somewhat calmly on Wednesday, favoring range-bound trading. This impacts gold and silver which move in small ranges.
The XAU/USD is trading at daily highs at $1729. At $1732 it may face an upcoming resistance at $1732 and then the $1750 barrier will follow. A break above could enable further rallies and ease current bearish pressures. Should it break below $1,720, it would be at its lowest since July 2021. Next support can be seen at the $1,707 area followed by $1,700.
Looking ahead to the next few hours, the key data ahead is June inflation in the US, which is expected to rise from 8.6% to 8.8% in annual terms, and the core rate to fall from 6% to 5.8%. These figures can have a big impact on the yield of Treasury bonds, and therefore on the price of gold.
The 10 year bond yield it is at 2.95%, and that of 30 years at 3.14%; above Tuesday’s levels. On the other hand, Wall Street futures are trading slightly higher.
Technical levels
Source: Fx Street
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