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Gold backs off from one-year high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold prices backed-off from the one-year high of USD 1242.16, but appear poised to test the monthly 100-MA located at USD 1257.90 if Wall Street follows Europe lower.

    Gold supported by weak treasury yield and risk-off

    The metal, know to have an inverse relationship with the Fed rate hike bets, was cheered by the sharp drop in the short duration government bond yields in Europe and US. The 2-yr treasury yield, which mimics rate hike bets, fell more than six basis points.

    Meanwhile, the 2-yr yields in Germany and France hit record lows, while the 10-yr yield in the UK fell to record lows. Consequently, the metal clocked one-year high of USD 1242.16.

    As of now, prices trade around USD 1235/Oz levels.

    Gold Technical Levels

    The immediate resistance is seen at 1242.16 (daily high), above which prices could test 1257.90 (monthly 100-MA). On the other hand, a break below 1224.23 (Apr 6, 2015 high) would expose 1205.80 (June 18, 2015 high).
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