12 Jan 2015
Gold regains strength on weakness in US stocks
FXStreet (Mumbai) - Gold prices have recovered losses to trade near one-month high tracking the slump in the US stock markets and the treasury yields.
The yellow metal now trades 0.90% high at USD 1227/Oz levels; as weakness in the US Treasury yields pushed the USD index lower from the day’s high. The 10-yr Treasury yield declined 2.9 basis points to 1.94%, while the 2-yr yield is down 1.6 basis points to 0.561%. Meanwhile, the DJIA index declined 0.51%, while the S&P weakened 0.74% due to the fall in Energy stocks. The yellow metal may extend gains if the decline in the US stocks, triggers full fledged risk aversion in the markets.
Gold Technical Levels
The immediate resistance is seen at 1231.9, above which Gold could test 1238.3 (Dec. 9 high). Meanwhile, support is seen at 1217.4 and 1210.00 levels.
The yellow metal now trades 0.90% high at USD 1227/Oz levels; as weakness in the US Treasury yields pushed the USD index lower from the day’s high. The 10-yr Treasury yield declined 2.9 basis points to 1.94%, while the 2-yr yield is down 1.6 basis points to 0.561%. Meanwhile, the DJIA index declined 0.51%, while the S&P weakened 0.74% due to the fall in Energy stocks. The yellow metal may extend gains if the decline in the US stocks, triggers full fledged risk aversion in the markets.
Gold Technical Levels
The immediate resistance is seen at 1231.9, above which Gold could test 1238.3 (Dec. 9 high). Meanwhile, support is seen at 1217.4 and 1210.00 levels.