Gold Trades Comatose, While Treasury Yields Rise
Gold
prices are trading largely unchanged on the day around $1257 levels
amid rising treasury yields and equally comatose dollar index.
Retreats from three-week high
The
metal backed-off from the three-week high of $1260 set yesterday. The
move appears to be driven by profit taking on longs, although a one to
two basis points rise seen in the short duration and long duration
treasury yields may have played a role.
However, the dollar
index is trading largely unchanged on the day around 94.00 levels and
thus providing little cues to the metal traders. Given the data calendar
in the US is light the focus would be on Fed speak and adjustment in
Fed rate hike bets.
Gold Technical Levels
The
immediate hurdle is noted at $1260 (Mar 22 high), above which prices
could target $1271 (Mar 17 high). Next major hurdle is noted at $1283.01
(Mar 11 high). On the other hand, a break below $1243.98 (previous
day’s low) would expose $1226.38. Next major support stands at $1200
levels.
(Market News Provided by FXstreet)
