Gold Prices Stabilize Amid Bond Market Developments

According to Odaily, analyst Justin Low from Investinglive noted that after a sell-off on Tuesday, spot gold prices have gradually returned to the $3,980-$3,990 range. However, the current momentum seems insufficient to challenge the psychological barrier of $4,000. From a macroeconomic perspective, key movements in the bond market this week warrant close attention. The yield on the 10-year U.S. Treasury note surged to 4.16% yesterday, marking a one-month high. If it continues to climb towards 4.21%, it could bolster the U.S. dollar, thereby exerting pressure on gold market sentiment. The bond market appears to be charting an independent course, with slightly better-than-expected U.S. private sector economic data potentially influencing the Federal Reserve's December decision. Currently, traders are pricing in a 61% probability of a 25 basis point rate cut in December, though this is not a certainty. Any adjustments in market expectations regarding rate cuts will have a significant impact on gold in the coming weeks. Moreover, the traditional seasonal bullish cycle for precious metals from December to January is approaching.