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Gold revisits Wednesday’s low after US GDP data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - Gold prices are back near Wednesday’s low of USD 1152/Oz after the US data showed the economy expanded at a moderate pace in the third quarter.

    Treasury yields rise, gold drops

    The 2-yr treasury yield, which is more policy sensitive to short-term interest rate expectations, rose to 0.72% after the US GDP data showed stockpiles dropped on account of a rise in consumer and business spending. The markets ignored the decline in the core PCE and the overall report matched the Fed expectations of a moderate expansion in the economy.

    The focus now shifts to the Bank of Japan rate decision due tomorrow. In the meantime, the movement in the US 2-yr treasury yield could continue to guide movement in gold prices.

    Gold Technical Levels

    The immediate resistance is located at 1171.94 (200-DMA), above which the prices could revisit the previous session’s high at 1183.00. On the other side, support is seen at 1146.25 (38.2% of Jul to Oct rally) and 1141.37 (50-DMA).
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