The 10-year US Treasury bond yield has surged above the 4.6% mark, maintaining its position in positive territory. This development comes as recent US economic data has failed to provide the necessary momentum for XAU/USD, better known as the gold price, to regain its traction. Meanwhile, the Federal Reserve (Fed) continues to signal that it requires evident signs of economic weakness and more subdued inflation prints to justify any further loosening of its policy.
In recent weeks, the Fed implemented a significant interest rate cut of 100 basis points. Despite this, gold has extended its correction from a multi-month high that was previously above $2,760. Currently, gold is trading below $2,740, reflecting ongoing market volatility and investor uncertainty.
President Trump's administration's policies, characterized by low taxes and light-touch regulation, have been perceived as favorable for economic growth. These policies aim to foster a business-friendly environment, potentially supporting further economic expansion.
It is important to note that the author of this article, as well as FXStreet, is not a registered investment advisor. The information presented is not intended as investment advice. The views expressed herein are solely those of the authors and should be considered as such by readers.