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Gold resilient to rise in treasury yields

FXStreet (Mumbai) - Gold prices remain largely unchanged even though the upward revision of the US Q2 GDP report saw treasury yields representing rate hike bets extend gains.

Supported by hourly 50-MA

A minor drop to the hourly 50-MA located at USD 1140/Oz levels was quickly reversed as the metal is back to trade around USD 1144-1145/Oz levels. The uptick in the GDP on the back of strong consumption pushed up the two-year treasury yield to 0.743%, before it pared gains to trade around 0.72%; up 4 basis points on the day.

Overall, the metal has remained resilient to a stronger US GDP figure. The traders now look towards the sentiment on the Wall Street. The USD index; up 0.55% may also influence the metal.

Gold Technical Levels

The immediate resistance is located at 1150.00 (100-DMA), above which the prices could re-test the previous session’s high at 1156.70. On the other side, support is seen at 1141.73 (Sep 18 high), under which the losses could be extended to 1136.23 (5-DMA).

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