- Gold plunges then bounces on advance in talks.
- Optimism weighs on metals, drop in yields offers metal support.
- High volatility is expected to persist in markets, including gold.
Gold fell to $1,890, the lowest level since February 25, after reports indicated progress in talks between Russia and Ukraine. Positive expectations generated an extension in the gains of the equity markets.
On Wall Street, the dow jones up 0.50%, and the Nasdaq 0.49%, after moving away from the highs after the start of the session. Treasury bond yields fell sharply, fueled by developments in the Ukraine situation.
Positive expectations brought down the gold and also the dollar against the euro, the pound and the yen. Dollar weakness coupled with lower yields put a cap on XAU/USD’s decline.
The 10-year rate treasury bond it went from levels above 2.50% to fall below 2.40%. A sharp move that favored the rebound in gold, which is in the $1910 area.
The high volatility it is expected to remain in force, with gold affected by significant movements in the Treasury bond market and in market sentiment, which looks sensitive to the headlines due to the invasion of Russia.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
