Gold slides to session lows as USD firms up after GDP reading

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Gold prices dropped to a session low of $1225.80/Oz as dollar index ticked higher following the upwardly revised US Q4 GDP release.

    Rate hike bets rise, gold drops

    The two-year treasury yield in the US, which mimics short-term rate hike expectations, advanced to 0.77%. Consequently, the yellow metal, which is sensitive to rate hike bets, dropped to session lows before recovering slightly to trade around $1230/Oz levels.

    Traders now await the US personal spending report, which may influence treasury yields and affect the yellow metal.

    Gold Technical Levels

    The immediate resistance is seen at 1240, above which prices could rise to 1253.32 (Feb 24 high). On the other hand, a break below 1220.60 (Feb 24 low) would open doors for a slide to 1212 (23.6% of Dec low – Feb high).
    For more information, read our latest forex news.

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