Gold Prices Rise Despite Higher Treasury Yields

Key Insights

• Gold prices moved higher, breaking out of a tight range
• The dollar moved higher against most major currencies
• U.S. Treasury yields reignited their trend higher

Gold prices moved higher despite a stronger dollar and stronger Treasury yields. The data released on Thursday was mixed, with the S&P Manufacturing Index rising and Jobless claims falling. Durable goods orders were lower and slightly worse than expected.

U.S. Durable goods orders shrank for the first time in five months. Expectations were for a 1% decline. The slowdown was concentrated in passenger planes and autos. Core orders slipped 0.3% in the month. The core number strips out transportation and military hardware. It was the first decline in 12 months.

Technical Analysis

Gold moved slightly higher on Thursday. Near former resistance, support is seen near the 10-day moving average at $1,941. Resistance is seen near the March highs at 2,070. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal.

The medium-term momentum has turned, but the downward movements’ trajectory is slowing. The MACD histogram is printing in negative territory with a slowing trajectory which points to a consolidation in gold prices.