Gold brought an end to its brief phase of consolidation in Europe, and broke to the downside amid a recovery in the US treasury yields across the curve
Gold drops to test 5-DMA
Currently, Comex gold futures trade 0.12% higher at 1225.75, having faced strong offers above $ 1230 levels. The yellow metal came under fresh selling pressure ahead of European open, as risk-on remains in full swings and underpins the demand higher-yielding treasury yields, in wake of a Trump win, at the expense of zero-yielding asset, gold.
The US dollar also stalled its corrective slide and recovers in tandem with the treasury yields, which also collaborated to the renewed weakness behind the yellow metal.
Markets will continue to track the broader market sentiment and trends around the T-yields ahead of the US macro news due later in the NA session.
Comex Gold Technical Levels
The metal has an immediate resistance at 1232.95 (daily high) and 1238.30 (daily R2). Meanwhile, the support stands at 1220 (zero figure) below which doors could open for 1211 (five-month lows).
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