Gold stays bid in Asia as treasury yields extend slide

By FXStreet Gold prices trade on a front foot around $1260 levels as treasury yields extended overnight losses on the back of an all out dovish Fed.

2-year yield drops

The 2-yr treasury yield, which mimics short-term rate hike bets, dropped 4 basis points in Asia to 0.84%. The yield was trading at 0.98% ahead of the FOMC statement release. A sharp drop in the short duration yield is helping metal stay positive.

Meanwhile, volatility in the major Asian equity indices is keeping the metal bid as well. Prices currently trade around $1260; up more than 2% since FOMC rate decision.

Gold Technical Levels

The immediate hurdle is seen 1263 (monthly 100-MA). A violation there would expose 1283 (Mar 11 high). On the other hand, immediate support is seen at 1227 (23.6% of Dec low-Mar high), under which prices could test bid around 1200 levels.
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Source:: FX Street