Gold under the influence of fluctuations in government bond yields and the dollar exchange rate this week

MEVHunterX · 2026-01-12T13:23:27+00:00

Gold prices will reflect the relationship between the U.S. dollar and Treasury yields. Rising yields may pressure gold, while the dollar's recovery could reduce its attractiveness. Upcoming economic reports will influence market direction.

MEVHunterX

2026-01-12 13:23:27

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Considering the dynamics of financial markets, the price of gold in the coming days will primarily reflect the relationship between the US dollar exchange rate and Treasury bond yields. According to analysis by expert Fawad Razaqzada cited by Jinse Finance, these two factors are key indicators for the direction of the precious metal’s quotes.

Pressure on gold from the perspective of bond yields

An increase in Treasury bond yields can pose a significant challenge to assets like gold, which naturally offer zero or low returns. If investors observe further declines in bond prices or an increase in their yields, pressure on the gold price may intensify. In such a situation, capital may shift toward more profitable instruments, weakening interest in the precious metal.

The role of the dollar in investor decisions

The US dollar has played a significant role in recent weeks. After the Federal Reserve signaled readiness for further interest rate cuts in the upcoming year, the dollar came under market pressure. However, if the dollar recovers its position this week — especially in connection with the release of key economic data and numerous statements from Fed officials — gold may lose its appeal to international investors.

Key events awaiting the markets

Market participants’ attention is focused on two important releases: the non-farm employment report for November, scheduled for Tuesday, and consumer price data, which will be released on Thursday. These indicators could be pivotal factors for the direction of currency market changes and shape the future trajectory of gold quotes in the coming days.

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