The defense line at 4020 for gold is in critical condition! Amid the ‘calm eye of the storm’ in U.S. Treasury bonds, the dollar is brewing its next assault!

On Wednesday (October 22) Beijing time, the U.S. Treasury bond market continued its mild bull flattening pattern, with the 10-year yield falling slightly to 3.950%, down 0.35% on the day, indicating that investors’ expectations for the timing of the end of quantitative tightening (QT) have moved forward further. This injected a note of cautious optimism into the entire fixed-income sector. The U.S. Dollar Index edged up 0.07% to around 99.0329, remaining above the middle Bollinger Band, reflecting its relative resilience amid a recovery in risk appetite. Meanwhile, spot gold prices plunged to USD 4,040.54 per ounce, with a daily decline of 2.04%, and have retreated nearly 9% from recent highs. This sharp correction highlighted the vulnerability of safe-haven assets under the influence of signals from the bond market. Overall, the market is currently in a data vacuum due to the government shutdown, leaving Wednesday’s economic…