Gold aims fresh all-time-high as US yields crumble on soft data | MarketTalk: What’s up today? | Swissquote

Show notes

US yields tanked and the US dollar slipped yesterday, after the US JOLTS data showed that the job openings in the US fell below 10 million in February.
Today, the ADP report is expected to reveal around 208K new private job additions in the US last month. Any weakness in the data will clearly be cheered by the Fed doves and could lead to further weakness in the US treasury yields, whereas a stronger-than-expected ADP print could bring the Fed hawks back to the market.
And if the Reserve Bank of New Zealand (RBNZ) is any indication of the future of the global tightening cycle, the tightening is apparently not coming to an end.
The RBNZ surprised today with a 50bp hike, versus a 25bp hike expected by analysts. The bank pointed at high inflation and strong employment, and said that there is no conflict between lowering inflation by raising rates and financial stability.
The RBNZ decision poured some cold water on dovish Fed expectations today in Asia, as the inflows into US treasuries also slowed, and reversed.
In precious metals, the falling US yields and the broadly weaker US dollar pushed gold to a fresh year-high, above $2000 per ounce.
Two important questions are, whether gold could break its record, and whether it could consolidate gains sustainably above the $2000 level.
Listen to find out more!