Gold: Flat lined below 100-day EMA, focus on 10-year treasury yield

Gold is rolling sideways below the 100-day exponential moving average (EMA) amid heightened US-China trade tensions.
The metal could move past the EMA hurdle if the 10-year treasury yield drops below 3.057 percent, confirming a double top breakdown.

Omkar Godbole FXStreet Contributor

Gold is flat lined below the 100-day EMA of $1,224 in Asia, having failed to take out that hurdle on Friday, despite the weakness in the US dollar.

The greenback, gold's biggest nemesis, fell sharply on Friday as investors began pricing in a Fed rate pause in 2019. This is because, Fed's Powell sounded upbeat on the economy last week, but cited a global economic slowdown, housing risks and rising fiscal deficit as risks to the US economy.

While the safe haven metal cheered the weakness in the yellow metal, a break above the 100-day EMA remained elusive. That, however, could happen today as the 10-year US treasury yield teasing a break below the double top neckline support of 3.057 percent.

The treasury yields could sharply on double top breakdown, resulting in a deeper drop in the greenback and rally in gold.

At press time, the yellow metal is changing hands at $1,221 per Oz and the dollar index (DXY) is trading unchanged on the day at 96.45.

Gold Technical Levels

XAU/USD

Overview:
    Last Price: 1221.58
    Daily change: 78 pips
    Daily change: 0.0639%
    Daily Open: 1220.8
Trends:
    Daily SMA20: 1220.15
    Daily SMA50: 1214.77
    Daily SMA100: 1206.74
    Daily SMA200: 1239.09
Levels:
    Daily High: 1220.8
    Daily Low: 1220.8
    Weekly High: 1225.4
    Weekly Low: 1196
    Monthly High: 1243.43
    Monthly Low: 1182.54
    Daily Fibonacci 38.2%: 1220.8
    Daily Fibonacci 61.8%: 1220.8
    Daily Pivot Point S1: 1220.8
    Daily Pivot Point S2: 1220.8
    Daily Pivot Point S3: 1220.8
    Daily Pivot Point R1: 1220.8
    Daily Pivot Point R2: 1220.8
    Daily Pivot Point R3: 1220.8

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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