Gold hits weekly high despite rising US bond yields

With a gain of over 0.56%, the price of gold has risen to a new weekly high of $1987.25. This is because US business activity is starting to pick up steam, as shown by September’s record-breaking new home sales and the S&P Global PMIs.

The US 10-year Treasury bond yield has also increased by 13 basis points to 4.95%. Gold traders are now focusing on upcoming US economic data, including Q3 GDP, Durable Good Orders, and unemployment claims. Despite the strong US Dollar and rising US Treasury bond yields, XAU/USD has managed to maintain its gains.

Geopolitical risks remain weighing on the market sentiment. Gold could remain upward biased, but October’s 26 data could potentially impact the market.

The US agenda will feature Gross Domestic Product for Q3, Durable Good Orders, and unemployment claims. If the data is dollar-supportive and triggers a repricing for further interest rate hikes by the Fed, gold prices could dip. Otherwise, gold traders expect further upside.