Gold unable to recover, holds at 4-month lows
|- Gold remains under pressure below $1,300/oz as US yields consolidate at multi-year highs.
- DXY modestly higher, although the US Dollar is down against commodity currencies.
Gold continues to trade near daily lows. The rebound was short-lived and after finding resistance at $1,292 dropped back toward the lows. It bottomed earlier today at $1,286.25 the lowest since December.
Price is hovering slightly below daily lows as the US dollar remains strong but posting mix results on Wednesday. It is higher against its European rivals but modestly lower versus commodity currencies. Underlying strength is still seen around the greenback on the back of bond yields. The 10-year is near yesterday’s high, at 3.09%, at levels last seen back in 2011.
Jitters around emerging markets and today’s headlines on US-Korea did not impulse the demand for gold. Price action continues to be driven by USD strength.
Technical levels
XAU/USD is testing the support seen around $1,288; a break lower could intensify the negative tone. The next support might be seen at $1,280/82 and $1,275. On the upside, resistance could be located at $1,296, $1,305 and $1,310.
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