Gold holds at three-week highs
|Gold is heading for the second weekly gain, now trading at $1245 levels; its highest level in three-weeks.
USD weakness supports gold
The Dollar Index fell to a 13-month low of 93.89 in the overnight trade and is headed for the weekly loss. The greenback is being offered on the back of weak US data and the resulting speculation that the Fed would go slow with the policy normalization.
The decline in the treasury yields also helps the yellow metal maintain the bid tone. The US 10-year Treasury yield fell to a three-week low of 2.238% yesterday and currently trades around 2.26%.
The yellow metal may remain well bid ahead of the weekend, unless the dollar sees a technical recovery.
Gold Technical Levels
A break above $1247.20 (previous day’s high) would open up upside towards $1260 (June 23 high) and $1272.40 (May 1 high). On the downside, breach of support at $1234.60 (previous day’s low) could yield a sell-off to $1221.80 (July 6 high) and $1216.50 (July 5 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.