XAU/USD jumps towards $1850 as US yields fall on risk aversion
- Gold climbs to its highest level in four days at $1850.
- Silver erases losses and nears Wednesday’s high near $21.90.
- US yields slide as demand for Treasuries strengthens amid risk aversion.
Gold gained momentum, driven by a context of risk aversion and a weaker US dollar. XAU/USD surged from below $1820 to the $1850 area.
Stocks are falling sharply on Wall Street. The Dow Jones loses 2.50% while the Nasdaq falls more than 4%. Recession concerns are driving prices down. At the same time, demand for safe-haven assets boosted government bonds. The US 10-year Treasury yield fell to 3.32% from 3.49%.
The US dollar is falling against its G10 rivals, particularly against the Swiss franc and yen. DXY falls 0.90% and trades below 105.00.
The combination of lower yields and a weaker dollar pushed XAU/USD higher. The yellow metal is trading at $1,846, its highest since Monday, and is looking towards $1,850. A break to the upside could open the doors to more gains.
XAG/USD also hit a multi-day high at $21.89. Earlier Thursday, bottom at $21.35. On the contrary, cryptocurrencies remain under pressure. Bitcoin continues to trade dangerously close to the $20,000 level.