A combination of factors — oil & copper prices, sluggish wage growth, weakness in equities today — are pressuring 10-year Yield, which is now at 1.93%, or 10 bps below Friday’s Jobs Report recovery high.
Only a sharp rally above 2.03% will argue technically that Yield has put in a meaningful bottom in and around the 1.90% area.
Conversely, Gold, it is acting extremely well, given the constant headwind of a rising US Dollar (DXY) and otherwise growing deflationary perceptions.
Something is going on in the Gold market that is grinding it higher in an impressive display of relative strength.
My next optimal target zone is $1240-$1244. Key near-term support rests at $1218.00.