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Gold hammered down to 100-DMA support on upbeat US GDP

   •  Upward revision of the US Q3 GDP lifts USD.
   •  Surging US bond yields adding to the downward pressure.
   •  Global risk-on trade fails to lend any support.

Gold finally broke down of its mid-European session consolidation phase and tumbled to 100-day SMA support, around the $1285-86 region, post-US GDP revision.

The US Q3 GDP was revised higher to show an annualized economic growth of 3.3%, better than 3.2% expected and 3.0% originally reported. The data provided a minor boost to the US Dollar and was seen weighing on dollar-denominated commodities - like gold.

Adding to this, a sharp upsurge in the US Treasury bond yields, especially after the release of outgoing Fed Chair Janet Yellen's prepared testimony speech, prompted algos to instantly dump the non-yielding yellow metal.

Meanwhile, the prevalent strong bullish sentiment around equity markets also did little to lend any support to the precious metal's safe-haven appeal and stall the sharp slide during the early NA session.

Technical levels to watch

A follow-through weakness below $1285 level now seems to get extended towards $1276 intermediate support en-route $1270-69 zone. On the upside, $1292 level now becomes immediate resistance, above which the metal could head back towards testing $1297-99 supply zone.
 

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