Gold is up by 0.6% on the day currently
Once again, the bond market and stocks are sending conflicting signals over the risk mood as we navigate through European trading today.
For the first half of the week, both were seemingly moving in tandem but we are starting to see some divergence now as European equities and US futures continue to sit higher.
Currently, US 10-year yields are down by over 1.7 bps to 1.63% to session lows and that is keeping USD/JPY flat at 109.80 while gold is extending gains to $1,566 now.
The near-term picture sees gold surpass its highs yesterday and is now looking to test the key hourly moving averages around $1,568.08 and $1,572.20. Those will be key levels for buyers to break above to regain more control to push towards $1,590 to $1,600 again.
