Gold has climbed to its highest level since late February after finally breaking through the $1,800 mark on Thursday.
The yellow metal had threatened to break the psychological level several times in the past couple of weeks but was thwarted at every opportunity…until today.
It was a case of perseverance pays for gold bulls. With US Treasury yields coming under further pressure, gold seized its opportunity.
Sponsored content
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The US 10 year yield was hovering above 1.57% before gold made its break. It is now sitting at 1.56%.
Gold is now trading around the $1,812 level after smashing through $1,800, but up until early March, it had been trending lower, with yields climbing from around August 2020.
Source: IG
Looking at the chart, a likely daily close above $1,800 will see gold continue to gain in the near term, especially with the USD weakness. Thus, momentum remains to the upside, but it’s not exactly a clear run higher, and, as always, US yields will play a significant factor in its trajectory.
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.
