FXStreet (Mumbai) – Gold prices are back near Wednesday’s low of USD 1152/Oz after the US data showed the economy expanded at a moderate pace in the third quarter.
Treasury yields rise, gold drops
The 2-yr treasury yield, which is more policy sensitive to short-term interest rate expectations, rose to 0.72% after the US GDP data showed stockpiles dropped on account of a rise in consumer and business spending. The markets ignored the decline in the core PCE and the overall report matched the Fed expectations of a moderate expansion in the economy.
The focus now shifts to the Bank of Japan rate decision due tomorrow. In the meantime, the movement in the US 2-yr treasury yield could continue to guide movement in gold prices.
Gold Technical Levels
The immediate resistance is located at 1171.94 (200-DMA), above which the prices could revisit the previous session’s high at 1183.00. On the other side, support is seen at 1146.25 (38.2% of Jul to Oct rally) and 1141.37 (50-DMA).
(Market News Provided by FXstreet)