Hua Seng Heng assesses the gold price trend as upward after the US Treasury announced it would more than double the size of its government bond buybacks, from 2 billion dollars to at least 4 billion dollars. This pushed yields on 10-year and 30-year US government bonds down below 4.70 percent and 5.20 percent respectively, while the dollar index weakened to 98.76, reducing pressure from the opportunity cost of holding gold. However, risk remains from crude oil prices, which could rise if Iran attacks US military targets in Europe, potentially supporting higher inflation and Federal Reserve interest rates. The SPDR fund bought an additional 9.41 tonnes of gold. Hua Seng Heng gives resistance for global gold at 4,515 and 4,526 dollars, with support at 4,455 and 4,425 dollars. For gold bullion, resistance is at 70,050 and 70,150 baht, with support at 69,450 and 69,150 baht.
US Treasury increases bond buybacks, pushing 10-year yields below 4.70%
US Treasury increases bond buybacks, pushing 30-year yields below 5.20%
Lower bond yields and weaker dollar reduce opportunity cost of holding gold, supporting price uptrend
