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Gold subdued amid strong USD

  • Gold is a touch soft on strong USD.
  • Treasury yields rise, could keep USD well bid & gold under pressure.

Gold remains depressed in Asia, courtesy of a rebound in the USD on tax reform optimism and fading political uncertainty.

As of writing, the safe haven yellow metal is down 0.4 percent to $1277.20.

USD found some love in Asia after ABC network corrected the Friday's bombshell Flynn report. Also, over the weekend, the Senate approved tax cuts. Hence, the dollar index gained 0.30 percent to 93.09.

Ahead in the day, the metal could extend losses as another wave of USD demand could hit the markets at the European open. The equities are likely to cheer the good news in the US as well, adding to the bearish pressure around the yellow metal.

Gold Technical Levels

A break below $1273.10 (Nov. 30 low) would open up downside towards $1263.80 (Oct. 27 low) and $1249.50 (Oct. 2016 low). On the other hand, a move above $1285.10 (Nov. 2 high) would expose $1292.50 (Dec. 1 high)  and $1303.40 (Nov. 27 high).

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