Gold prints fresh 10-day low as T-yields rise
|The rise in the treasury yield and the resulting strength in the USD, coupled with fresh record highs on Wall Street pushed gold (XAU/USD) prices to a fresh 10-day low of $1276 levels.
Trades above 100-day MA
At the time of writing, the yellow metal has been trading just above the 100-day MA level of $1278.
Prices have dropped $30 this week as the talk of a more hawkish Fed head in 2018 put a bid under the US dollar. The dollar index (DXY) has strengthened 0.76% from the Oct. 10 low of 92.59.
The treasury yields strengthened a well. The 10-year yield added more than 4 basis points on Wednesday and currently trades flat lined around 2.345%.
Gold prices may regain bid tone as the December Fed rate hike has been priced-in. Hedge demand may rise with stocks at record highs across the globe.
Gold Technical Levels
A breach of $1,278.60 (100-DMA) would expose support lined up at $1,262.80 (low Oct.6) and finally $1,259.24 (200-DMA). On the upside, the immediate resistance is seen at $1,300.66 (55-DMA) followed by $1,308.40 (high Oct.16) and finally $1,312.60 (50% Fibo of the September-October drop).
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