Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold price surges on Tuesday as Treasury yields rise. Gold prices surged to new heights on Tuesday, driven by a combination of geopolitical tensions and rising U.S. Treasury yields. As investors seek safe-haven assets amid global uncertainty, XAU/USD has continued its upward trajectory, reaching a peak of $2,745.01.
The market’s mood has soured in recent days, with increased tensions in the Middle East and the looming U.S. presidential election adding to existing uncertainties. The possibility of a Donald Trump victory has led to speculation about a slower pace of Federal Reserve interest rate cuts, potentially boosting inflation and even increasing the odds of future rate hikes.
This shift in sentiment has caused government bond yields to rise, with the 10-year Treasury note reaching its highest level since late July. The correlation between rising Treasury yields and gold prices is evident, as investors often seek gold as a hedge against inflation and economic uncertainty.
From a technical perspective, XAU/USD remains in a strong uptrend, with no signs of a reversal despite reaching overbought levels. The daily and 4-hour charts indicate a continued upward trajectory, supported by bullish technical indicators and moving averages.
Key Support and Resistance Levels
Support: 2,716.40, 2,700.00, 2,685.45
Resistance: 2,740.00, 2,755.00, 2,770.00
