Gold eases from 5-DMA as 2-year T-yields rally

Gold stalled its recovery at 5-DMA and retreated slightly as the US dollar regained poise against its main peers amid risk-on market profile.

Gold holds above $ 1200 mark

Currently, Comex gold futures trade 0.20% higher at $ 1211, attempting a bounce from half-year troughs. The yellow metal edged higher for the first time in four days as the greenback paused its recent upsurge, backed by a potential Dec Fed rate hike.

However, the yellow metal failed to hold at higher levels and now trims gains over the last hour, as the USD buying is seen picking-up pace across the board amid strengthening 2-year treasury yields.

Focus now remains on the FOMC minutes and US durable goods data for fresh direction on the bullion, although the metal remains exposed to further downside as we get closer to a Dec Fed meeting.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1213.65 (daily high/ 5-DMA) and 1224 (10-DMA). Meanwhile, the support stands at 1205 (daily low) below which doors could open for 1200 (key psychological figure).

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