Gold trades at 9-month low as Treasury yields rise

Oil driven risk-on in the markets pushed gold prices back to 96-month low of $1170.50 and the treasury yields higher. 

The yellow metal fell from the high of $1194 to $1174 on Wednesday after the OPEC deal led to a 9% gain in oil prices.

Moreover, the OPEC deal is seen pushing inflation expectations higher over time in the US and across the advanced world. Consequently, the Treasury yields hardened. 

At the time of writing, the 10-year Treasury yield was up two basis points, while the 2-year yield was flat. 

Oil is likely to remain in the driver’s seat ahead of the US non-farm payrolls release. PMI data due today across the globe could offer clues as well. 

Gold Technical Levels

The major support is seen directly at $1156.72 (Sep 24 high), which, if breached would expose $1141.77 (Sep 18 high). On the higher side, a major hurdle is seen directly at $1200. Acceptance above the same on daily closing basis would open doors for a corrective move to $1233.10 (Nov 16 high).