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Gold declines on strong US GDP data

FXStreet (Mumbai) - Gold prices declined after the US Q3 GDP was revised upwards due to strong contributions from personal consumption expenditure and non-residential fixed investment.

Gold now trades 0.28% lower at USD 1193.10/Oz levels, after having failed at the 50-DMA level of USD 1203 since last few sessions. The yellow metal came under pressure after the second estimate of the US Q3 GDP printed at 3.9%, blowing past the market expectation of 3.3% and the previous figure of 3.5%.

A strong GDP estimate pushed the yields at the short-end of the US treasury market curve higher. The two-year yield, which mimics short-term interest rate expectations, rose to the day’s high of 0.543%. The yellow metal may decline further if the yields at the short-end of the market curve extend gains.

Gold Technical Levels

Gold has an immediate resistance at 1195.90 on the hourly charts, above which prices may once again re-test 1200 levels. On the flip side, a break below 1186, shall open doors for 1175 levels on the downside.

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