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6 May 2015
Gold turns negative
FXStreet (Mumbai) - Gold prices erased gains and fell into losses as the bond yields across the Eurozone and in the US continue to inch higher.
Drops to 50-DMA
The metal fell to its 50-DMA located at USD 1189.83, tracking a sharp rise in the benchmark bond yields in the US. The 10-year treasury yield now trades at 2.203%, while the German 10-year bund yield rose to 0.55%.
Though the USD index is still trading weak, the yellow metal declined as rising rates on long duration bonds reduces incentive to hold the yellow metal.
Gold Technical Levels
The immediate resistance is seen at 1195, above which the metal could test its next resistance located at 1200. On the flip side, a break below 1189.83 (50-DMA), could drive the metal lower to 1183.7 (Apr. 14 low).
Drops to 50-DMA
The metal fell to its 50-DMA located at USD 1189.83, tracking a sharp rise in the benchmark bond yields in the US. The 10-year treasury yield now trades at 2.203%, while the German 10-year bund yield rose to 0.55%.
Though the USD index is still trading weak, the yellow metal declined as rising rates on long duration bonds reduces incentive to hold the yellow metal.
Gold Technical Levels
The immediate resistance is seen at 1195, above which the metal could test its next resistance located at 1200. On the flip side, a break below 1189.83 (50-DMA), could drive the metal lower to 1183.7 (Apr. 14 low).