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  • Gold extended its daily rally beyond $1,760 on Thursday.
  • 10-year US Treasury bond yield is down more than 4% on the day.
  • US Dollar Index falls into the negative territory below 91.60.

After rising to the $1,750 area earlier in the day, the XAU/USD pair went into a consolidation phase but gathered bullish momentum in the early American session. As of writing, gold was trading at its highest level since late February at $1,764, rising 1.6% on a daily basis.

US T-bond yields turn south after US data

The sharp drop witnessed in the US Treasury bond yields seems to be fueling gold’s rally on Thursday. Currently, the benchmark 10-year US Treasury bond yield is losing 4.1% on the day at 1.572%. Consequently, the US Dollar Index is posting small daily losses at 91.58.

Earlier in the day, the data published by the US Census Bureau revealed that Retail Sales in March surged by 9.8%. This print surpassed the market expectation for an increase of 5.9%. Moreover, the US Department of Labor reported that the Initial Jobless Claims dropped to the lowest level since March 2020 at 576,000 in the week ending April 10, compared to analysts’ estimate of 700,000.  

These upbeat data releases triggered a rally in Wall Street’s main indexes, which have been showing an inverse correlation with the US T-bond yields.

There won’t be any other macroeconomic data releases from the US in the remainder of the day and investors will remain focused on US T-bond yields.

Technical levels to watch for