Gold’s struggle for clear directional bias continues after the People’s Bank of China’s (PBOC) interest rate decision.
The yellow metal has been restricted largely to a narrow range of $1,500 to $1,480 since last Monday and is currently trading at $1490 per Oz, representing little change on the day.
The PBOC announced a one-year prime loan rate at 4.20% soon before press time, disappointing expectations for a slight easing via rate cut to 4.15%.
Even so, Gold is showing resilience by avoiding losses. The yellow metal usually drops on the hawkish decisions of central bankers.
That said, buyers are not willing to step in either, despite technical charts flashing signs of seller exhaustion, as discussed on Friday.
Focus on US yields
The US 10-year Treasury yield is currently flat-lined around 1.75%. Interestingly, the benchmark yield is also lacking a clear directional bias since Oct. 15.
Gold will likely come under pressure if the yield ends consolidation with a bullish breakout above 1.80%.
The yellow metal and borrowing costs tend to move in opposite directions.