Gold is looking oversold according to one technical indicator, and any weak US data may see the precious metal turn higher in the short-term
Weaker US Treasury yields should underpin the precious metal.is slightly better bid in mid-morning trade, aiming to establish a near-term base just below the $2,320 per ounce level. This resilience is partially attributed to the recent decline in US Treasury yields. After peaking at 5% by the end of May, the yield on the rate-sensitive 2-year Treasury note has retreated to 4.80%. A break below the supportive 200-day simple moving average at 4.75% could leave the multi-week low of 4.
The recent series of higher highs in Treasury yields have been disrupted, signaling a potential end to this year's yield rally. The Commodity Channel Index indicator suggests that the market is currently oversold, indicating a likely short-term period of consolidation before the highly anticipated US Jobs Report scheduled for this Friday .
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