USD price falls, short-term trend is difficult to predict

Oct 9, 2023

Most opinions say that rising long-term bond yields are still one of the unfavorable factors for gold. Evidence is that in the past week, gold suffered a strong sell-off when the US 30-year bond interest rate increased to 5% for the first time since 2007, while the 10-year bond interest rate reached 5% for the first time since 2007. highest in 16 years, at 4.8%.

Analysts point out that the reason bond yields increased is because the US Federal Reserve (Fed) still maintains high interest rates and has no plans to reduce them.

Edward Moya, senior market analyst at OANDA, said consumers are feeling the weight of rising interest rates. Many parts of the economy will be squeezed by rising interest rates.

According to Edward Moya, the possibility that gold could fall to 1,800 USD/ounce cannot be ruled out. However, in the context of increasing economic risks, the current gold price may become the focus of investment.