Gold prices have rebounded during the Asian session as US Treasury yields softened, attracting fresh buying interest. This recovery follows a drop to the weekly low, driven by anticipation of Fed Chair Warsh's upcoming speech.
Why do yields affect gold?
Gold is often viewed as a safe-haven asset and a hedge against inflation. When US bond yields drop, the opportunity cost of holding gold decreases, making it more appealing to investors. As a result, gold tends to rise when yields fall.
Automated trading and gold
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