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Gold edges lower

FXStreet (Mumbai) - Gold prices are softening ahead of the European session tracking a rise in the US Dollar Index.

Gold is trading 0.26% lower at USD 1242.10/Oz, after having hit a high of USD 1244.90/Oz. Moreover, Gold declined yesterday after the US CPI data showed a surprising rise in the cost of living, which pushed the ten-year treasury yields higher. The metal could not inch above USD 1245 levels today after the HSBC China manufacturing PMI index, which edged up to a three-month high of 50.4 in October, hit the wires.

However, the metal may receive support from the weakness in the European and the US equity futures. The European PMIs are due for release today, which are likely to create volatility in the markets. A weak print out of core European nations may help Gold gain strength.

Gold Technical levels

Gold has an immediate support of 1245, above which prices may re-test 1250 levels. On the other hand, Gold may fall to 1235 levels if the immediate support of 1240 is breached.

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