Rate hike bets rise, gold drops
The two-year treasury yield in the US, which mimics short-term rate hike expectations, advanced to 0.77%. Consequently, the yellow metal, which is sensitive to rate hike bets, dropped to session lows before recovering slightly to trade around $1230/Oz levels.
Traders now await the US personal spending report, which may influence treasury yields and affect the yellow metal.
Gold Technical Levels
The immediate resistance is seen at 1240, above which prices could rise to 1253.32 (Feb 24 high). On the other hand, a break below 1220.60 (Feb 24 low) would open doors for a slide to 1212 (23.6% of Dec low – Feb high).
(Market News Provided by FXstreet)