Gold is back down to the $1700 level (currently $1703.50) as the 10-year yield pushes back towards the critical 1.60% level. I still think gold is probably near a bottom, but more downside remains possible if yields spike toward 2.0% near-term.
The jump in yields could be just a knee-jerk reaction to the signing of the $1.9 trillion stimulus deal. It’s too soon to know. Nevertheless, a sustained breakout above 1.60% in the 10-year could trigger more selling across most markets.
Currently, the sentiment surrounding gold is incredibly bearish. I’m beginning to see a lot of bearish commentaries expecting lower prices. That helps support a low, in my opinion.