Gold stays comatose even though Treasury yields spike

September 16, 2015

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). 

Publication source
OctaFX information  OctaFX reviews

October 21, 2016
Gold prices drop in Asia amid stronger greenback
On Friday, gold dropped during Asia trade amid a strengthening greenback as well as surging chances of a rate hike weighing on the hedge commodity...
October 21, 2016
ECB holds the rate unchanged with the pressure on Draghi
After a brief upturn seen in the late Asian trading, the currency retreats to the Wednesday close showing a tepid response to the ECB policy update. The New York FED leader William Dudley comments offered a support to the Dollar rally although the focus remained on the US inflation...
October 21, 2016
EURGBP Tests Major Support
This morning we saw the release of German PPI YoY and MoM figures for September. The former fell to -1.4%, compared to expectations of -1.2%. The latter was -0.2%, in line with expectations...

OctaFX Rating
HYCM Rating
FXCM Rating
FIBO Group Rating
OANDA Rating
FBS Rating

Banc De Binary Rating
EZTrader Rating
IQ Option Rating
Binary Brokerz Rating
Porter Finance Rating
Beeoptions Rating