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Retreat in US Yields Supports Gold, But for How Long? XAU/USD, XAU/EUR Price Setups

May 31, 2023

Via: DailyFX

Gold rose on Tuesday, tracking the decline in US Treasury yields after a deal in Washington to raise the government’s debt ceiling, potentially averting a catastrophic government default. But is the short-term downtrend in the yellow metal over?

Yields on near-end US Treasury bills fell sharply even as the deal needs to secure blessings from Congress before June 5, when the Treasury Department could run out of funds to pay its debts. A vote on this is expected to occur in the House on Wednesday which gives the Senate time to consider it before June 5.

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