The yellow metal trades comatose around $1269/Oz levels. On the contrary, AUD/JPY, which is widely considered as a risk barometer is down 0.50%, while the 10-year treasury yield is down 1.4 basis points.
What’s behind gold’s poor performance?
The metal’s poor show this Tuesday morning could be due to expectations that Fed would raise rates by 25 basis points in June. Investors could also be waiting on the sidelines to see how the Greek and German bond markets react before pushing the metal higher.
The metal may find buyers if the German yields drop and the Greek and Periphery yields spike. A strong US personal spending data may play a spoilsport.
Gold Technical Levels
A break above $1270.40 (May 1 high) would expose resistance at $1273.88 (Apr 19 low) and $1278 (Apr 25 high). On the other hand, a breakdown of support at $1265 (May 18 low) could yield a pull back to $1256 (50-DMA) and $1247.81 (May 24 low).
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