During the Asian trading session, the People's Bank of China took a significant step by announcing a reduction in the benchmark Loan Prime Rates (LPRs) by ten basis points (bps). Moreover, the one-year LPR was cut from 3.65% to 3.55%, while the five-year LPR was lowered from 4.30% to 4.20%. These rate cuts served as a reminder to investors about the sluggishness observed in Chinese economic activity and fueled global economic downturn fears..
As a result, the US bond yields, which could be seen as the opportunity cost of holding Gold, lost ground. The 10-year bond yield retraced to 3.72%, the 2-year yield closed at 4.69% while the 5-year at 3.95%, all three with more than 1% declines.
XAUUSD
SELL NOW 1954 - 1952
✅𝖳𝖯1 1950
✅𝖳𝖯2 1945
✅TP3 1940
🛑𝖲𝖫 1960
As a result, the US bond yields, which could be seen as the opportunity cost of holding Gold, lost ground. The 10-year bond yield retraced to 3.72%, the 2-year yield closed at 4.69% while the 5-year at 3.95%, all three with more than 1% declines.
XAUUSD
SELL NOW 1954 - 1952 ✅𝖳𝖯1 1950
✅𝖳𝖯2 1945
✅TP3 1940
🛑𝖲𝖫 1960
