Gold surges to $1850 despite higher T-yields

Gold prices have bounced from multi-day lows under $1830 to the $1850 level after the beginning of the US trading session despite higher US yields. The Gold Index holds around daily highs even as Wall Street extends losses and as the US dollar further strengthens.

Earlier on Wednesday, gold sharply surged finding resistance under $1850. After a pullback to $1838 following the release of better-than-expected US economic data, prices turned again to the upside. The Index stands at $1849, fresh daily high.

The positive momentum for gold remains unbroken even despite the negative context for the metal. The US Treasury 10-year yield stands at weekly highs at 2.93%. The US dollar trades at daily highs across the board. The DXY is up by 0.80% above 102.55.

The positive US ISM Manufacturing figures brought about a decline in US equity prices as the figures reinforced expectations of aggressive monetary policy tightening from the US central bank.

Wednesday’s rally in the precious metal could turn into a reversal if gold manages to break and hold above $1850 and silver does the same with $22.00.

Silver is rising by 1.45%, erasing most of Tuesday’s losses. XAG/USD bottomed at $21.44 during the European session and recently peaked at $21.97.