Bond Yields Fall and Dollar Weakens, Boosting Gold Prices

Thansettakij•Economy•3d ago

Reader Briefing

Falling US bond yields and a weakening US dollar have pushed gold prices above 4,500 dollars per ounce.

•30-year US Bond Yields dropped nearly 10 bps to 5.18%.
•Gold prices surged more than 3%, surpassing 4,500 dollars per ounce.
•Thai gold prices may potentially reach 69,800–70,200 baht.
•Tensions between the US and Iran and the situation at the Strait of Hormuz remain key monitoring factors.

•30-year Bond Yields decreased by nearly 10 bps to 5.18% after reaching a peak since 2007.
•The US dollar weakened toward a 3-month low, supporting a gold price increase of over 3% to exceed 4,500 dollars per ounce.
•Treasury Buyback occurred, though long-term Bond Yield trends still depend on inflation, Fed interest rate policies, and US government debt concerns.
•The 60-day MOU framework between the US and Iran expired without an extension.
•Uncertainty at the Strait of Hormuz could affect energy supplies and potentially push oil prices higher, which may increase gold demand as a safe haven asset.
•Short-term support levels for gold are at 4,425-4,405 dollars per ounce, equivalent to approximately 68,500–68,300 baht for Thai gold.
•If gold prices stay above support levels, there is a possibility to test 4,500-4,520 dollars per ounce, or approximately 69,800–70,200 baht for Thai gold.

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Fed(เฟด)

The organization whose interest rate policies affect long-term Bond Yield directions.

US(สหรัฐฯ)ℹ️

The country whose government debt, bond yields, and relations with Iran impact gold prices.

Iran(อิหร่าน)ℹ️

The country involved in a 60-day MOU framework with the US.

Strait of Hormuz(ช่องแคบฮอร์มุซ)ℹ️

The area where uncertainty creates concerns over energy supply.