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).
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September 26, 2016 The week ahead: Focus shifts from central banks to politics
Monday’s US presidential debate will probably break a new record, not in the S&P 500, but the number of viewers which according to media analyst could reach over 100 million Americans, surpassing Carter-Reagan debate in 1980 which attracted 80.6 million viewers...
September 23, 2016 Risk rating
The market is in need of a new narrative. The Fed meeting in December is too far off and for now, the US election is not something that entices excitement. With central banks on hold, markets are pushing the envelope in terms of risk...
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