Treasury yields rallied as bond traders focused on PMI data. The yield of 2-year Treasuries climbed towards the 4.90% level, while the yield of 10-year Treasuries settled above 5.10%. Rising Treasury yields put significant pressure on gold markets in today’s trading session.
U.S. dollar gained ground against a broad basket of currencies as forex traders focused on hawkish Fed policy outlook. Strong dollar put additional pressure on gold markets today.
Rising oil prices also served as a bearish catalyst for gold today. Brent oil climbed above the $102.00 level amid lack of progress in the Middle East and problems in diesel markets.
Currently, gold is trying to settle below the support level at $4300 – $4320. In case gold manages to settle below the $4300 level, it will head towards the next support, which is located in the $4160 – $4180 range.