7 Jan 2015
Gold under pressure ahead of Fed minutes
FXStreet (Mumbai) - Gold prices decline ahead of the December Federal Reserve (Fed) minutes release, tracking the strength in the Treasury yields in the US.
The yellow metal trades 0.61% lower at USD 1212/Oz levels, compared to the previous session’s close at USD 1219.40/Oz levels. The metal is taking cues from the strength in the US treasury yields. The 10-year yield is up 2.4 basis points at 1.987%, while the 30-yr yield is up 3.1 basis points at 2.554%. Interestingly, the 2-yr yield, a barometer of short-term interest rate expectations, is trading largely unchanged at 0.633% amid widespread belief the minutes would hint at policy tightening in 2015. Gold may extend decline if the 2-year yield starts rising as we move closer to Fed minutes release.
Gold Technical Levels
Gold has an immediate support located at 1209.76 (50-DMA), under which prices may fall to 1205.50 levels. Meanwhile, resistance is seen at 1214.18 (10-DMA) and 1218.4 levels.
The yellow metal trades 0.61% lower at USD 1212/Oz levels, compared to the previous session’s close at USD 1219.40/Oz levels. The metal is taking cues from the strength in the US treasury yields. The 10-year yield is up 2.4 basis points at 1.987%, while the 30-yr yield is up 3.1 basis points at 2.554%. Interestingly, the 2-yr yield, a barometer of short-term interest rate expectations, is trading largely unchanged at 0.633% amid widespread belief the minutes would hint at policy tightening in 2015. Gold may extend decline if the 2-year yield starts rising as we move closer to Fed minutes release.
Gold Technical Levels
Gold has an immediate support located at 1209.76 (50-DMA), under which prices may fall to 1205.50 levels. Meanwhile, resistance is seen at 1214.18 (10-DMA) and 1218.4 levels.