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Gold consolidates around daily lows, Treasury yields drop

FXStreet (Mumbai) - Gold prices traded in the sideways manner at daily lows around USD 1132/Oz levels, while the treasury yields dropped amid losses in the European stocks.

Gold hovers around hourly 200-MA

Prices are struggling to recover above the hourly 200-MA located at USD 1133/Oz levels. The yellow metal was ditched in Asia in reaction to Friday’s upward revision of the US Q2 GDP report. The metal remained under pressure in Europe, although the downside got capped due to losses in the European stocks.

Meanwhile, the treasury yields also took a hit in Europe on account of risk aversion in stocks. The benchmark 10-yr treasury yields dropped 2.5 basis points. Ahead in the day, both gold and treasuries could be influenced by the Fed speak and the US personal spending and income report.

Gold Technical Levels

At USD 1131/Oz levels, the immediate support is located at 1130 (10-DMA), under which the losses could be extended to 1121.38 (Sep 22 low). On the other side, resistance is seen at 1141.73 (Sep 18 high) and 1149 (100-DMA).

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