Gold intermarket: Bond sell-off and poor US data supporting Gold

Gold has moved having recovered from the London session's sell-off and has done so within the bond market crashing and yields rising to a five-month high.

Gold spot, at time of writing is 1269.95 and is looking for territory on through 1270.00 as we approach the end of the US session. Speculation that Central Banks are running out of options is concerning investors and the move started overnight when BoJ's Kuroda said it “would not be strange” to see long-term bond yields rise,  as published in The Wall Street Journal. The rise in yields was less pronounced at the short end of the yield curve, but the yield on the 10-year Treasury note was hitting levels last seen in late May as markets start to factor in monetary tightening by Global Banks which point towards  which higher bond yields. The US30 YT is now up to 2.60 from lows of 2.27 at the beginning of October while Gold is up from $1,254 lows for October.

Meanwhile, DXY traded up by 0.3% at 98.94, after pulling back to trade as low as 98.50. It’s up 3.7% month to date. The idea that the Fed may not hike rates due to the data not being adaquate for such a move, such as today's durable goods disappointment, could still underpin the price of gold as investors seek out the metal as a safe haven to park ideal cash awaiting new developments and opportunties elsewhere at a later stage. The 1hr 200 sma at 1266 is providing support while the upside target is a break of $1,272/76 recent highs for the month.