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Gold inches higher tracking weakness in the Treasury yields

FXStreet (Mumbai) - Gold prices are slowly inching higher tracking the slump in the US treasury yields. The ten-year treasury yields have declined below 2.2% today as concerns of a slowdown in the global economy have increased the safe haven demand for the US Treasuries.

Gold is trading 0.54% higher at USD 1236.40/Oz, after having sustained above USD 1232 since the morning session. Markets have priced-in a back to back disappointing economic data out of the Eurozone, leading to a fall in the Equity markets and rise in the bond prices. The two-year treasury yield, a barometer of short-term interest rate expectations, has tanked to 0.38, well below the August lows.

Gold prices may extend gains today if the US Equity markets extend their slide.

Gold technical levels

Bulls are awaiting for the yellow metal to rise above 1238 levels. Prices have managed to sustain above the 1232 levels today, hence the same would act as a strong support now.

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