Gold tumbles to test $1250

Gold turned sharply to the downside, falling more than $10 from daily highs. The metal came under pressure amid a rally of the US dollar. The value of the ounce was affected as USD/JPY jumped and as US bonds tumbled. 

USD/JPY broke to the upside, after moving with limited price action during several days while US bond yields are having the biggest gain of the month so far. The 10-year yield climbed from 2.236% to 2.275%, the highest in almost a week.

U.S. Treasury bond yields edge higher on Tuesday

Gold bottomed at $1250 during the American session, the lowest level since last Friday. Price is testing the $1250 zone. Earlier today it rose to test last week highs. After reaching $1263 turned to the downside and accelerated the decline in New York. 

Technical levels 

To the downside, support levels are seen at $1250 (daily low), $1245 (May 18 low) and $1239 (May 16 high). On the upside, resistance levels are now located at $1257 (European session low), $1264 (last week high) and $1270.