The spike in the short duration treasury yields in the US on Tuesday has had little effect onGold, which continues to trade comatose in the range of USD 1105/Oz levels.
Focus on Fed
The previous metal traders prefer to remain on the sidelines and avoid making big bets ahead of Thursday’s FOMC rate decision. The fed funds futures indicate only 30% probability of a rate hike tomorrow. Meanwhile, two-year treasury yields, which mimics rate hike expectations, rose to its highest since April 2011.
Still, the metal remains stuck around USD 1105 levels. Ahead in the day, the metal could take its cues from the US consumer price index figure and the resulting movement in the two-year treasury yield.
Gold Technical Levels
The immediate resistance is located at 1113.50 (Sep 10 high), above which gains could be extended to 1123.50 (Sep 9 high). On the other side, support is located at 1102.10 (Sep 9 low) and 1098.20 (Sep 11 low).