Gold Prices Exhibit Signs of Bullish Momentum Amid Declining Treasury Yields

The precious metal, gold, has shown a promising recovery, indicating a possible end to its 3.8% pullback that occurred between October 27, 2023, and November 13, 2023. Investors are now observing signs that could suggest the beginning of a sustained bullish period for the commodity.

Support for Gold's Uptrend

The recent downturn in the U.S. 10-year Treasury real yields, which have fallen by 50 basis points since late October, is fueling optimism for gold's rally. As yields decrease, gold becomes more attractive as an investment, since the opportunity cost of holding the non-interest-bearing asset diminishes.

Technical Indicators Back Bullish Sentiment

Gold's value found support at the crucial $1,972 mark, which is integral for maintaining the current minor uptrend. The price rebounded from a low of $1,931 seen on November 13, along with a surge in bullish sentiment, as evidenced by the strong performance against previous losses and an upturn of the daily Relative Strength Index (RSI).

However, gold's continued ascent rests on its ability to hold above the $1,972 support level. Should it fail, the price may retreat to an intermediate support level at $1,957, potentially dampening the bullish outlook.

Therefore, the next levels of resistance that traders are watching closely are at $2,006 and the $2,028 to $2,037 range—a critical area that previously recorded minor peaks in value.

Gold, Bullish, Yields