FXStreet (Mumbai) – The mixed batch of the US data had little impact on Gold, which continues to trade in the sideways manner around USD 1078/Oz levels.
Bears in control as Treasury yields rise
The metal remains firmly in the grip of bears as treasury yields extended gains after the data in the US showed the CPI rose for the first time in three months. The 10-yr yield now trades around 2.292%; up 2bps. The 2-yr yield extended gains to trade 2.5bps higher at 0.875%.
Meanwhile, the Treasury yields ignored the contraction in the US industrial production as markets believe the December liftoff is a done deal.
Gold did witness a minor spike to USD 1083.50, but quickly fell back to around USD 1078/Oz levels.
Gold Technical Levels
The immediate support is seen at 1073.97 (Last Thursday’s low), under which the metal could drop to 1032.30 (Mar 2008 high). On the other side, resistance is seen at 1086 (hourly 50-MA and hourly 100-MA), above which the prices could rise to 1091.73 (hourly 200-MA).
(Market News Provided by FXstreet)