Benchmark Treasury yields retreated today as government debt issues took a reprieve from their ascent last week, which put downward pressure on U.S. equities. However, certain leveraged bear and inverse exchange-traded products (ETPs) have been benefitting from the rise in yields depressing not just bond prices, but also gold and silver.

The strength in the greenback combined with rising rates have already pumped the brakes on gold prices rising, but now rising yields have also suppressed any price increases in the precious metal.

“Gold’s weakness is not just due to the stronger dollar, but the rising yields, too,” said Fawad Razaqzada, technical analyst at Forex.com. “Together, these factors are proving to be a toxic mix for the noninterest-bearing and buck-denominated commodity.”

“Unless at least one of these influences are not put right, gold will struggle to sustain any rally,” added Razagzada. “In the short term, the path of least resistance would remain to the south so long as that $1,205-15 resistance area remains intact.”

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