Treasury rates are reaching new highs, while gold is edging closer to the $1850 level of support. Yesterday, the yield on 30-year Treasuries rose over the psychologically significant 3.00 percent level and headed towards the next resistance level of 3.05 percent, which was reached today. A test of the 3.00 percent threshold is also being conducted by the yield on 10-year Treasury bills.
Treasury rates are rising in anticipation of the Federal Reserve’s Interest Rate Decision, which will be issued tomorrow morning. Bond traders are betting that Powell’s remarks would be hawkish in nature. Markets seem to be anticipating that the Federal Reserve will be prepared to cut the size of its balance sheet rapidly. Such a program would drive yields up, which will be detrimental to gold, which does not pay interest.

The 1860.56 level of support and the 1860.56 level of resistance serve as the key support and resistance levels. Currently, the price is below the pivot point of 1856.93. The EMA10 is moving below both the EMAs of 200 and 100, indicating a bearish condition. Stochastic is moving in the low ranges. The RSI is moving at the level of 30 and the ADX is showing a horizontal signal. The MACD histogram is in negative territory with a downward signal.

• There is resistance at 1860.56, followed by resistance at 1863.46 and 1867.09.
• There is support at 1854.03, Below, there is 1850.40 and 1847.50.

Note: We do not suggest any investment advice, and these analyses are just to increase the traders’ awareness but not a certain instruction for trading.