January 29, 2023

US yields continue its move higher. Gold gets hammered and is back below $1800

US yields have moved higher

The start of the calendar year has been met with selling in the bond market which has increased yields markedly. The 10 year yield is now up 11.8 basis points. The 30 year yield is up 11.6 basis points and back above the 2.00% level.

Looking at the 10 year daily chart, the run to the upside has the pair getting closer to a downward sloping trendline that cuts across at 1.681%. That trendline connects highs from the end of March, October and November. Moving above would have traders looking toward the 1.691% level followed by the high for 2021 at 1.774%.

In December, yields traded in a volatile up and down fashion but closed the year near the month highs and back above the 200 and 100 day moving averages (green and blue lines). As long as the price can stay above those moving averages, the bias remains the upside as far as yields go.

US yields

US 10 year yield is moving away from its 100 and 200D MAs

The run higher in yields (and the USD) has gold moving sharply lower.

Looking at it daily chart below, the price is testing its 200 day moving average at $1798.61. The low price just reached $1798.41. Just below that is the 100 day moving average at $1791.73. Last week, the price tested that moving average line and found support buyers. The high price reached $1831.65 today which was the highest level since November 22, but that run higher certainly has been met with heavy selling.


Spot gold is down testing its 200 and 100 day MAs

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