Logo of Phnom Penh Post newspaper Phnom Penh Post - Gold price under pressure again from rising bond yields?

Gold price under pressure again from rising bond yields?

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Chhea Chhayheng

Gold price under pressure again from rising bond yields?

Rising bond yields have been erasing the interest from traders to buy gold in comparison to the dollar as the bullish angle is technically possible at the key psychological support. “It’s just the second week of 2022, and gold is already looking at two major obstacles it needs to come to terms with – surging US Treasury yields and Federal Reserve’s quantitative tightening (QT),” Kitco News market reporter Anna Golubova said on Monday.

She added that “in response to a more hawkish tone, bond yields climbed to multi-year peaks, which is adding pressure on gold price action”.

“Yields continue to rise and many risk assets, equities and crypto continue to struggle. The market has moved to boost the chance hike by the Fed in March and has begun leaning toward four hikes this year,” she quoted Bannockburn Global Forex chief market strategist Marc Chandler as saying.

Jim Wyckoff reported for Kitco that “Gold prices [were] modestly down in midday US action Monday. Rising government bond yields around the gold are working against the safe-haven metals bulls”.

The senior market analyst and columnist added: “Global stock markets were mixed overnight. US stock indexes are solidly lower at midday. Trader and investor risk aversion is keener early this week. Rising bond yields amid tighter monetary policies from major central banks of the world are giving the marketplace pause.

“Last week the Federal Reserve suggested it will raise US interest rates three times in 2022, in order to curb rising inflation that is becoming more problematic. Some analysts expect more than three rate hikes from the Fed this year.”

Technically, gold prices are still moving weekly in the range of $1,762 to $1,830 per ounce, which shows that market is not yet to break to any trend.

In daily charts, gold prices are sideways in a symmetrical triangle pattern that begins to get smaller in the range waiting for the break-out, meaning that the market can break to key support or key resistance.

For a bearish side, traders can sell at $1,820, setting a take-profit function at $1,802 and a stop-loss at $1,831. Conversely, a buy-position can be placed at the key psychological support of $1,800, with $1,823 for the take-profit and $1,785 for the stop-loss.

Content image - Phnom Penh Post


  • Hun Sen: Stop Russia sanctions

    Prime Minister Hun Sen said sanctions against Russia as a result of its military offensive in Ukraine should be stopped as they have produced no tangible results, and predicted that a global food crisis would ensue in 2023 as a consequence. Speaking to an audience at

  • Chinese tourists 2.0 – Coming anytime soon?

    Regional tourism is grappling with the absence of the prolific travellers and big spenders – the Chinese tourists. Cambodia, which has welcomed over two million Chinese tourists before Covid-19, is reeling from the economic loss despite being the first to fully open last November ‘To put

  • PM reflects on shoe throwing: Free speech or act of violence?

    Prime Minister Hun Sen on May 17 questioned whether a man who threw a shoe at him while he was in the US was exercising freedom of expression or if it was an act of hostility. Hun Sen was referring to an incident last week when

  • Siem Reap’s Angkor Botanical Garden opens

    The Angkor Botanical Garden was officially opened on May 19 with free entry for both local and international visitors for the first six weeks. The garden was established on a nearly 15ha plot of land in Siem Reap. “After the first six weeks, Angkor Botanical Garden

  • Pub Street on the cards for Battambang

    The Battambang Provincial Authority has announced that it is considering establishing a Pub Street in the area around the heritage buildings in Battambang town in a bid to attract more tourists. Battambang provincial governor Sok Lou told The Post that the establishment of a Pub

  • Hun Sen: Don’t react to hostility

    Prime Minister Hun Sen urged tolerance and thanked members of the Cambodian diaspora for not reacting to the hostility on display towards him by others while he was in the US to attend the May 12-13 ASEAN-US Special Summit in Washington, DC. In an audio