Gold Trades Comatose, While Treasury Yields Rise
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)