According to the technicals that I like to use, the long-term trend in gold is still in play. Fundamentally, COMEX gold futures fell to $1,210/ounce on Dec. 6, 2014 and since then we have seen somewhat of a bounce higher.
The yen and Swiss franc weakened on increased speculation that U.S. lawmakers may be able to reach an agreement on increasing the nation’s debt ceiling and avoid a default, which reduced demand for haven assets.
When the market is unsure that the U.S. government will be able to pay its debts, which include interest payments to bondholders, it make sense that the U.S. bond market might not now be looked at as necessarily the ultimate safe haven.
The yen weakened beyond 100 per dollar for the first time in a month as global demand for the greenback increased amid speculation the Federal Reserve will reduce monetary stimulus while the Bank of Japan sustains it.