CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

All that glitters: gold drifts despite lower Treasury yields

By Kyle Rodda

13:00, 7 November 2023

Gold prices have declined despite a drop in Treasury yields and a weaker US Dollar. We look at the key drivers and technical levels for the gold price.

Lower yields fail to stoke demand for gold

Gold has drifted in the past week despite a meaningful drop in Treasury yields and the US Dollar. The US 10-year yield has oscillated in a wide range between 5% and 4.5%, with yields currently trading at the lower end of the range. More importantly for gold, real yields have also receded from more than two-decade highs. The move in yields came following some softer-than-expected ISM business activity data and US jobs data, as well as dovish rhetoric from US Fed Chair Jerome Powell following the central bank’s decision to hold rates steady last week.

(Source: Bloomberg)

What is your sentiment on Gold?

Vote to see Traders sentiment!

 Easing geopolitical risk weakens gold’s safe haven bid

A part of the reason for gold’s insensitivity to the moves in the bond market is that the price had already diverged from that fundamental driver following the flare-up of geopolitical risks stemming from the Israel-Hamas war. While there remains the risk of a broader conflict in the Middle East, a less intense escalation in the conflict has weakened the demand for gold as a safe-haven asset.

Gold long positions climb for the third week

Although gold prices have pulled back in the past week, COMEX data reveals that traders added to long positions. Net long positioning increased for the third week in a row, possibly as traders bought into the news of the rising prospect of war in the Gaza Strip. Positioning has reverted towards longer-term averages; however, it remains below levels consistent with a very bullish market and implies there could be more buyers waiting on the sidelines.

Oil - Crude

81.34 Price
-0.850% 1D Chg, %
Long position overnight fee 0.0440%
Short position overnight fee -0.0659%
Overnight fee time 21:00 (UTC)
Spread 0.030

Natural Gas

2.32 Price
+1.850% 1D Chg, %
Long position overnight fee -0.0162%
Short position overnight fee -0.0057%
Overnight fee time 21:00 (UTC)
Spread 0.0050

Oil - Brent

84.58 Price
-0.610% 1D Chg, %
Long position overnight fee 0.0284%
Short position overnight fee -0.0504%
Overnight fee time 21:00 (UTC)
Spread 0.032


30.82 Price
-2.110% 1D Chg, %
Long position overnight fee -0.0205%
Short position overnight fee 0.0123%
Overnight fee time 21:00 (UTC)
Spread 0.040

(Source: World Gold Council, Comex)

Past Performance is not a reliable indicator of future results. 

Gold pulls back as upside momentum fades

As is being conveyed by the daily RSI, upside momentum has faded for gold. Sellers defended the $2000 level, with diminishing fears about war in the Middle East putting downward pressure on prices. In the short term, gold has pushed through support around $1980, with buyers also defending the 20DMA. The next level of support could be at $1950; a daily close above $2000 could indicate a renewed move higher.

Past performance is not a reliable indicator of future results

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading