- Both Gold and US Treasury yields are lacking a clear directional bias.
- The PBOC's reluctance to cut rates has failed to move the needle on the yellow metal.
Gold's struggle for clear directional bias continues after the People's Bank of China's (PBOC) interest rate decision.
The yellow metal has been restricted largely to a narrow range of $1,500 to $1,480 since last Monday and is currently trading at $1490 per Oz, representing little change on the day.
The PBOC announced a one-year prime loan rate at 4.20% soon before press time, disappointing expectations for a slight easing via rate cut to 4.15%.
Even so, Gold is showing resilience by avoiding losses. The yellow metal usually drops on the hawkish decisions of central bankers.
That said, buyers are not willing to step in either, despite technical charts flashing signs of seller exhaustion, as discussed on Friday.
Focus on US yields
The US 10-year Treasury yield is currently flat-lined around 1.75%. Interestingly, the benchmark yield is also lacking a clear directional bias since Oct. 15.
Gold will likely come under pressure if the yield ends consolidation with a bullish breakout above 1.80%.
The yellow metal and borrowing costs tend to move in opposite directions.
|Today last price||1490.28|
|Today Daily Change||-0.41|
|Today Daily Change %||-0.03|
|Today daily open||1490.69|
|Previous Daily High||1494.15|
|Previous Daily Low||1485.06|
|Previous Weekly High||1497.95|
|Previous Weekly Low||1477.15|
|Previous Monthly High||1557.03|
|Previous Monthly Low||1464.61|
|Daily Fibonacci 38.2%||1488.53|
|Daily Fibonacci 61.8%||1490.68|
|Daily Pivot Point S1||1485.78|
|Daily Pivot Point S2||1480.88|
|Daily Pivot Point S3||1476.69|
|Daily Pivot Point R1||1494.87|
|Daily Pivot Point R2||1499.06|
|Daily Pivot Point R3||1503.96|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.