U.S. Treasury yields are frustrated, potential powder kegs are supported! Gold breaks through 1840

The first gold network on January 20, With the rise and fall of the US dollar and US Treasury yields on Wednesday, as well as the fermentation of geopolitical tensions in Russia and Ukraine, gold bulls ushered in a long-lost rally.

The US index failed to break through the suppression of the 96 mark above and retraced to around 95.4; the 10-year US Treasury yield once rushed to the 1.9% mark and dived high in the evening.

Gold climbed again yesterday after dipping below the 1810 mark, climbing as high as $1843 in the evening; in the Asian session on Thursday, gold continued to hover around 1840, with afternoon quotes at $1839.4 an ounce.

The situation in Russia and Ukraine continues to escalate, and military operations are about to break out? Gold bulls revel

Analysts believe that geopolitical tensions are also a major reason for yesterday's gold outbreak.

They argue that current geopolitical considerations, including concerns about Ukraine and Russia, could be the impetus for some to buy gold.

Yesterday wednesday, US President Joe Biden predicted that Russian President Vladimir Putin would take military action against Ukraine. But he said a full-scale invasion would trigger a massive response that would cost Russia and its economy dearly.

Biden said the U.S. and Western response could adjust to Russia's actions. The United States fears that Russia could launch an attack on Ukraine in a matter of days or weeks.

Biden then warned: "But if they really do what they have the ability to do... If they invade Ukraine further, it will be a disaster for Russia".

In recent days, a series of security dialogues between Russia and the West have come to an end, which has exacerbated concerns about tensions between Russia and Ukraine.

In this context, US Secretary of State Blinken visited Ukraine on Wednesday and will hold talks with Russian Foreign Minister Lavrov in Geneva on the 21st.

Speaking at the US Embassy in Ukraine on the same day, Blinken said that Russia's concentration of troops near the Ukrainian border means that once Russian President Putin gives the order, the Russian army can attack Ukraine in a very short time. Blinken said that during the talks with Russian Foreign Minister Sergei Lavrov on Friday, he strongly hoped that Russia would stick to the path of peaceful diplomacy to defuse the crisis.

However, if Russia chooses to launch aggression, it will lead to a situation of conflict and confrontation and bring consequences to Russia.

The US Treasury yield was blocked from retreating at the 1.9% mark, and gold broke through the 1840 mark

Yesterday, Wednesday, the dollar fell sharply, and the two- and 10-year US Treasury yields also fell back after hitting a high of about two years.

Analysts said it was a normal reaction from the market to fully digest the Fed's march rate hike.

For now, the focus of investors' attention is the Fed's meeting next week, which could hint that the Fed will raise rates in March, the first in more than three years.

Federal funds rate futures have fully digested the possibility of a march tightening policy and a four-time rate hike in 2022.

Recent news suggests that the market is now expecting a rate hike of more than 25 basis points by the end of March. Given that no action is expected from this month's policy meeting, traders are also beginning to accept the possibility of a 50 basis point hike in March.

The US 10-year Treasury yield touched the 1.904% line during the day, but then retreated from the high, and the lowest retracement was near 1.824%.

Forexlive.com analyst Adam Button said that the decline in US Treasury yields has changed the pattern of many markets, with US stock futures bottoming out when yields peaked earlier, while gold prices are currently at a high level.

Supported by the retracement of the US dollar and US Treasury yields, last night's gold was sought after by a large number of buyers. Specifically, the data shows that comex's most active gold futures contract traded more than $1 billion twice during the US session.

This article originated from the first gold network