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Gold gains as treasury yields retreat

FXStreet (Mumbai) - Gold price received a shot in the arm since the Treasury yields in the US failed to sustain gains despite a better-than-expected US retail sales and Michigan confidence data.

Gold traded 0.44% higher at USD 1166.30/Oz levels, while the ten-year treasury yields retreated to 2.347% from the day’s high of 2.377%. The two-year treasury yield declined to 0.536%, from the day’s high of 0.548%.

Moreover, the yields have retreated despite the advance retail sales printing at 0.3% in October; higher than the market expectation of 0.2%. The Preliminary Michigan confidence number for November came-in at 89.4, higher than the expectation of 87.5.

The falling yields despite strong data is indicative of falling rate hike expectation. Thus yellow metal, which is known to have an inverse relationship with yields, gained strength.

Gold Technical Levels

Gold has an immediate resistance at 1171, above which prices may rise to 1183.00 levels. On the flip side, support is seen at 1161.5 and 1153.00 levels.

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