10-Year Treasury Yields found support above the December low of 1.40%, recovering above medium-term resistance at 2.00%. The outlook is hardening around a Fed increase in short-term rates by mid-year. A higher trough would suggest that the long-term down-trend in yields, shown below on an annual chart, is coming to a close. But only breakout above resistance at 3.00% would confirm that the secular bull-trend in bonds has ended.
The Dollar is strengthening on the back of low inflation and expectations of higher rates — bearish signs for gold.
Spot Gold remains in a bear trend, testing support at $1200/ounce.
Reversal of 13-week Twiggs Momentum below zero warns of another decline. A weekly close below $1180 would strengthen the bear signal.
* Target calculation: 1200 – ( 1400 – 1200 ) = 1000