Gold benefits from declining US bond yields

Gold price advances early in the New York session, up by 0.33% on falling US Treasury yields, while bonds climb amid further expectations that Fed could slow the pace of its rate hikes and monetary tightening measures.

The US dollar weakened, constituting a chance of momentum for the precious metal. Therefore, XAU/USD is trading at $1655.71 a troy ounce at the time of writing.

The US housing market continues to deteriorate, while the CB Consumer Confidence missed estimations on inflation concerns. Market sentiment is generally positive, as shown by global equities trading in the green territory.

Data revealed by the Conference Board, reported that Consumer Confidence dropped from 107.8 to 102.%, less than estimates of 105.9, decreasing for the second consecutive month, according to the survey.

As previously mentioned, market players are positioning for a possible Fed’s slower pace while economic data in the US continues to show further deterioration in the country’s economy, which, coupled with high inflation and lower bond yields, boosted gold prices.