Gold Higher as USD Slumps Ahead of Bond Auction, Housing Data
BonTradeUSD slumped in European session as investors await US bond auctions later today. Sale of 2-year Treasury securities was well-received yesterday and this triggered yields to fall. Gold rallied as a result of USD's weakness. Indeed, the following chart shows that gold has inverse correlation with interest rates - rising when rates fall. The market also worried about release of S&P/Case-Shiller Composite-20 housing price which probably contracted -0.18% m/m in October after rising +0.59% in the prior month. Crude oil changed little from yesterday's close but price stayed at elevated level of 91.15.
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Gold Higher as USD Slumps Ahead of Bond Auction, Housing Data
