FXStreet (Mumbai) – Gold prices dipped below 100-DMA at USD 1138.72/Oz, while the treasury yields rose as the European equities turned a blind eye towards weak China data.
10-yr treasury yield gains
The metal came under pressure as the 10-yr treasury yield in the US ticked higher by 2.5 basis points. The 2-yr yield, which is more policy sensitive also gained 1.3 basis points. Moreover, the equities in Europe did not pay attention to the slowdown in China highlighted by the private and the government PMI figures over the weekend.
Ahead in the day, both the treasury yields and the metal could witness action in case the Us ISM manufacturing PMI deviates significantly from the consensus estimates.
Gold Technical Levels
The immediate resistance is located at 1143.08 (daily high), above which the gains could be capped at 1147.69 (38.2% of Jul low-Oct high). On the other side, a failure to sustain above 1135.10 (Oct 6 low) could push the prices lower to 1134.15 (50% of Jul low-Oct high).
(Market News Provided by FXstreet)