FXStreet (Mumbai) – Gold bulls ran out of steam after the US weekly jobless claims printed at the lowest level in four decades. The metal now trades around USD 1094/Oz, after having printed high of USD 1104.50/OIz earlier today.
Upbeat labour data pushes treasury yields higher
The strong labor department data in the US pushed up the treasury yields across the curve, with relatively bigger gains at the short-end of the curve, which represents the rate hike expectations in the US. The 2-year yield currently trades 1.7 basis points higher at 0.723%.
Consequently, the metal, which is known to have an inverse relationship with the short-end treasury yields, dipped to trade largely unchanged on the day around USD 1094/Oz. With no major data due for release in the US, the metal is likely to track the sentiment on the Wall Street and the movement in the USD index and treasury yields.
Gold Technical Levels
The immediate resistance is located at the daily high of 1098.38 (hourly 50-MA) ahead of the major hurdle at 1107.69 (hourly 100-MA). On the flip side, support is seen at 1190.00 and 1086.94 (previous session’s low).
(Market News Provided by FXstreet)