OctaFX | OctaFX Forex Broker
Open trading account
Back

Gold drops below 100-DMA, treasury yields rise

FXStreet (Mumbai) - Gold prices dipped below 100-DMA at USD 1138.72/Oz, while the treasury yields rose as the European equities turned a blind eye towards weak China data.

10-yr treasury yield gains

The metal came under pressure as the 10-yr treasury yield in the US ticked higher by 2.5 basis points. The 2-yr yield, which is more policy sensitive also gained 1.3 basis points. Moreover, the equities in Europe did not pay attention to the slowdown in China highlighted by the private and the government PMI figures over the weekend.

Ahead in the day, both the treasury yields and the metal could witness action in case the Us ISM manufacturing PMI deviates significantly from the consensus estimates.

Gold Technical Levels

The immediate resistance is located at 1143.08 (daily high), above which the gains could be capped at 1147.69 (38.2% of Jul low-Oct high). On the other side, a failure to sustain above 1135.10 (Oct 6 low) could push the prices lower to 1134.15 (50% of Jul low-Oct high).

USD/CAD advances through 1.3100

The greenback trades on a firmer footing vs. its Canadian peer on Monday, lifting USD/CAD to fresh daily highs near 1.3120...
Read more Previous

GBP: Sharper relief in sight - Rabobank

Jane Foley, Research Analyst at Rabobank, notes that since mid-July Bank of England Governor Carney has been suggesting that the timing of the first UK rate rise of the cycle will come “into sharper relief around the turn of the year”.
Read more Next
Start livechat