Gold regains poise amid losses in European equities

Gold regains bid tone in Europe.
Equities drop in early trade.

Omkar Godbole FXStreet Contributor

Gold is mildly bid in Europe, possibly due to moderate losses in the European equities.

As of writing, the metal (XAU/USD) is trading at $1314/Oz levels; up 0.23 percent on the day. Prices hit a one-week low of $1308.22 in Asia, tracking the rise in the US 10-year treasury yield to 2.57 percent (highest level since March).

The recovery is likely driven by risk-off activity in the equity markets. For instance, Germany's DAX is down 0.30 percent. The pan European Stoxx 50 index is down 0.20 percent. This may have boosted demand for the safe haven yellow metal.

Also, the greenback has surrendered gains despite hardening of the Treasury yields, thus gold is attempting gains. Ahead in the day, action in the stock markets and comments from Fed officials could influence the yellow metal.

Gold Technical Levels

A break below $1304.77 (23.6% Fib R of December low - January high) would open up downside towards $1299.24 (Nov. 27 high) and $1291.60 (38.2% Fib R). On the higher side, a move above the 5-day MA level of $1316.26 would expose $1323.44 (Jan. 5 high) and $1326.04 (Jan. 4 high).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	High
1H	Bullish	Neutral	Low
4H	Bearish	Neutral	Expanding
1D	Bearish	Neutral	Expanding
1W	Bearish	Neutral	High
Updated Jan 10, 08:30 GMT

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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