Gold prices trade on a positive note in Europe, while the treasury yields recovered losses amid signs of strength in the major European equity futures.
Eight day losing streak stalled
The metal managed to halt the eight day losing streak on Monday by ending moderately higher at USD 1092.93/Oz. Prices dipped to a low of USD 1090 in Asia before recovering to trade at USD 1093/Oz levels.
The Chinese CPI missed estimates and triggered speculation of more easing. The immediate reaction was a dip in the treasury yields, however, the uptick in the European equity futures appears to have pulled up yields, which now trade largely unchanged on the day.
Ahead in the day, the metal could witness volatility on Fed’s Evans speech. Risk aversion in the equities could offer support to the metal as well.
Gold Technical Levels
The immediate resistance is seen at 1093.90 (hourly 50-MA), above which the prices could test 1102.20 (hourly 200-MA). On the other side, support is seen at 1089.18 (previous day’s low) and 1085.44 (Friday’s low), under which the losses could be extended to 1070 (July lows).