fxstreet.com 05 Feb, 2021 05:45 am

Gold sends for spandau ballet

Gold sends for spandau ballet
US yields firmed overnight, notably in the 30-year tenor. Hopes rose overnight that the Biden stimulus would pass through the US Senate relatively int

The prospect of a juicy wave of government spending and borrowing sent longer yields higher, boosting the US Dollar, but also lifted US equities, with Wall Street's rally resuming.But it was gold that really felt the pain of higher US yields and a stronger greenback.A higher than expected Non-Farm Payrolls, and ensuing moves higher by US yields and the Dollar this evening could set the market up for a short-term correction lower.A print well above 100,000 could spur another hike in longer-end yields on the US curve, with more Dollar strength exacerbating the steady short squeeze through much of January.

3000 early next week if US Dollar strength continues.Currencies markets are delicately poised this morning, with the charts generally pointing to another leg of Dollar strength ex-Asia.

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