Back to Wednesday's level
The 1.50% -1.60% level is key in the US 10 year yields and has been significant for the last couple of weeks. Last week the strong US CPI data caused the US 10 year yields to break out of the 1.60% level.
This in turn sent the USD higher as investors speculated that the Fed would be forced into tapering bonds early. The Fed repeated, and have continued to repeat, that they will not be moved by one data point. This allowed the yields to drift back lower.
So now we have the basic battle. Inflation will spur concerns over an early bond taper. Weak US data will keep yields lower(and support gold higher).
