Gold rebounds as T-yields hold downtrend

Gold prices modestly retreated on Wednesday. During the US session, the Gold Index rebounded from the one-month low at $1,709 and rose to $1,723. The precious metal is hovering around $1,720 and trades at $1718.40 per ounce at the time of writing

US treasury yields fell on Wednesday. Following the August ADP employment report, the demand for Treasuries surged. Private payrolls data are short of expectations with adding only 132K jobs versus the 288K of market estimates.

The US 10-year yield peaked at 3.16%, the highest level in two months and then pulled back to 3.10%, while the 2-year yield retreat from the highest since 2007 at 3.49% to 3.43%. The decline in yields weakened the US dollar. The US Dollar Index falls 0.35% on Wednesday and is back under 108.50.

Gold’s rebound is preventing the daily close under $1,715 which technically could account for a negative market development, and could mean further losses on the short term.