Gold erases gains, 2-yr treasury yield spikes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices erased gains, while the 2-yr treasury yield spiked after Fed left rates unchanged and kept the doors open for a hike ‘at the next meeting’.

    December meet is now a live event

    The FOMC dropped the line, “global developments may restrain growth” and said the pace of jobs gains slowed by unemployment remains steady. The statement also said the committee would consider whether to hike rates or not at the next meeting.

    Overall, the policy statement has managed to talk up December rate hike bets, which is evident from the sharp rise in the two-year treasury yield. The yield currently trades around 9 basis points higher at 0.707%. Consequently, the metal has pretty much erased its gains to trade largely unchanged on the day around USD 1164/Oz levels.

    Gold Technical Levels

    The immediate resistance is located at 1169.87 (hourly 200-MA0, above which the prices could revisit the daily high at 1180.60. On the other side, support is seen at 1158.70 (Oct 23 low) and 1141.37 (50-DMA).
    For more information, read our latest forex news.

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