The real yield on US 10-year Treasury bonds is now at multi-year lows, which is positive for gold, as the precious metal has historically been viewed by investors as a hedge against inflationary risks. This is a positive signal for the European currency, as assets correlate with each other.
The US Treasury this week will sell $230 billion of Treasuries, which is the maximum volume over the past 3 months and will have a positive impact on the value of the U.S. currency. The U.S. Federal Reserve said last week it would accelerate tapering of its massive bond buying programme and paved the way for three interest rate hikes in 2022. This factor will provide additional support to the dollar.
Origin: FreshForex
