Gold follows treasuries and Yen higher

Gold prices followed other traditional safe haven assets – treasuries and Yen - higher in Asia amid losses in Asian equities and due to caution ahead of Wednesday’s Fed rate decision and Friday’s Bank of Japan rate decision.

Stuck at 5-DMA

Metal recovered from the Asian session low of $1314.18, but is having a tough time holding above 5-DMA level of $1320.74 levels. Slide in Asian stocks strengthened the bid tone around traditional safe haven assets. 10-yr yield and 2-yr yield in the US retreated more than one basis point, while Japanese Yen added 0.82% against the US dollar.

On similar lines, gold jumped to a session high of $1322.44 levels before retreating just below 5-DMA level of $1320. Ahead in the day, action in European equities could influence the metal. Later in the US session, traders would eye consumer confidence release.

Gold Technical Levels

The metal was last seen trading around $1320/Oz. Breach of $1314 (rising trend line support on daily chart) could yield $1303 (May 2 high). A violation there would open doors for a test of $1284.41 (Mar 11 high). On the other hand, a break above $1322.44 (daily high) would expose $1327.73 (June 29 high), above which a major hurdle is noted at $1333.69 (July 22 high).