Gold Hit by Treasury Yield Shock as the Dollar Strengthens

Gold and the dollar are moving in opposite directions with unusual force, as a 1% DXY move now lines up with a near 2.5% swing in gold. David Scutt, StoneX Media Senior Market Analyst, explains why gold has become so sensitive to the U.S. dollar and Treasury yields, and what momentum indicators are now showing. Gold's 252-session beta to the U.S. dollar index ranks around the 99th percentile in data back to 1976, even though the inverse correlation itself is not unusually strong. Over the past year gold has been more than five times as volatile as the DXY on a daily basis, against a long-run average of about two times, with profit-taking, liquidation and tighter liquidity among the possible reasons. A hawkish repricing of the Federal Reserve rate outlook drove the biggest one-day jump in two-year Treasury yields this year, and of 44 comparable rate shocks since 2001 only one produced a larger gold decline. On the charts, RSI has broken its uptrend and slipped below the neutral 50 level, while MACD sits in negative territory and is converging on its signal line. 00:00 - Gold Slides as Dollar Firms 00:29 - Gold's Dollar Beta at Extremes 00:58 - Gold Swings 5x the DXY 01:29 - Two-Year Yields Rattle Gold 02:02 - RSI and MACD Warn Gold Bulls Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_david_scutt&utm_content=share Like and subscribe for more financial market insights. #Gold #StoneX #DavidScutt #FederalReserve --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social