The price of gold was sold in a flat curve along the APAC morning session. That happened after the yield result was down. Furthermore, it was also caused by the weaker US dollar which reach 0.76%.

That level was higher than before. The main US reached 2.6 percent on March. That was a sign for the highest level in 2.5 years because of the economy activity which is boosted by the vaccine launch. 

The fiscal stimulus also makes everything is better. However, the index of dollar is a little bit stepped back. It shows that the sellers does not think that a higher inflation is the cause of Fed’s decline. 

For your information, many people predicted that the decline will be happened soon. However, the market participants are still anticipating the increasing inflation reading in some periods ahead. 

The Price Level Movement And Gold Demand

The condition above is mostly triggered by the low basis effect. In addition, the increasing level movement in fact is able to raise the gold demand as the inflation value protection right now. 

That may happen although the real result can reduce this prospect. That is especially if the nominal yield result increases faster than the inflation expectation. It is the most possibility to happen. 

The 30 years treasury note accept the right request during the Tuesday auction. That pulls the lower obligation yield result. The real result is represented by the 10Y inflation index security.

That was decreased by 4 bps and became -0.72%. The declining result pushes the gold prices because the chance of price to stay still is decreasing. However, the condition can be changed in the future. 

The Important Speech From The Fed

The Fed’s speech on Wednesday was closely monitored by the gold sellers. Meanwhile, the United Started retail sales on Thursday also do the same monitoring for that aspect. What happen? 

In fact, the reading which is stronger than the expectation can increase the optimism. It is also able to push the investors to move from the holy metal to some other risky assets available. 

That is important to reach a good result and growth. Gold make it’s rebound is longer than the lowest level in $1733. That commodity tries to reach its psychology level again in $1750.

The situation happened ahead the US retail report which is really essential. The gold increase is supported by several factors. One of them is the consolidation  or correction owned by the USD. 

The Declining Treasury Yield

Consolidation is the correction of USD. That happened in the early session in America. Furthermor, the declining Treasury yield result also has it’s effect due to this condition.

It is happened amidst the market nuance which is still really careful. It supports the gold which is not giving the returns. Meanwhile, the United States prospect of sanctions to the Russia debt also important. 

In fact, that increase the taste for the risky assets and make gold takes its benefit as a safe – haven commodity. It is not stop on that. Some other causes can be found in the market as well. 

The Increasing Tensions Between The USA and China

It is known that the high tension between the USA and China also supports the yellow metal. From the technical side, many experts give their predictions about the future of that good and the possibilities. 

Gold is in the level of breakout confirmation. That was in the form of a symmetric triangle in an hour graphic if the price closed the candle stick above the trendlibe ressistance in certain levels. 

It is around $1743. If the upper side breakdown is successfully done, the gold bullish can try its chance to rally. That is done to test again the psychological level of $1750 as stated before.