FXStreet (Mumbai) – Gold prices trade in the sideways manner around USD 1185/Oz, while the 2-year yield trades flat after having recovered from the lows on Wednesday.
Gold inversely related to 2-yr yield
The inverse correlation with the 2-yr treasury yield in the US and gold has strengthened as the rate hike bets in the US are on the rise. The 2-yr yield, which mimics the rate hike expectations, recovered from 0.69-0.7% to a high of 0.76% on Wednesday. Consequently, gold dropped to a low of USD 1082/Oz levels.
The 2-yr yield now trades around 0.728%, thereby lending support to Gold prices, which now hover around USD 1185/Oz levels. Apart from the Treasury yields, the yellow metal could also be influenced by the broader market sentiment.
Gold Technical Levels
The immediate resistance is located on the hourly chart at 1086.40, above which the metal could rise to 1091.70 (Wednesday’s high). On the other hand, support is seen at 1082 (Wednesday’s low) and 1073.70 (July 24 low).
(Market News Provided by FXstreet)