Gold tests 50-DMA after US data

By FXStreet FXStreet (Mumbai) – Gold prices extended losses to test the 50-DMA support at USD 1140.82/Oz levels after the US data pushed up Treasury yields and led to a moderate recovery in the USD index.

Supported by 50-DMA

Prices have bounced-off from the 50-DMA support at USD 1140.82/Oz levels to trade around USD 1143.50/Oz levels. The policy sensitive 2-yr treasury yield, which represents rate hike expectations, rose to a high of 0.759% after the data in the US showed a sharp rise in Q3 wage growth.

That helped the USD index recover part of its losses to trade above 97.00 handle. Still, a weaker-than-expected personal income and spending report managed to keep the Greenback under pressure, due to which the metal may have managed to hold above 50-DMA support.

Gold Technical Levels

The immediate support is located at 1140.85 (50-DMA), under which the prices could drop to 1134.15 (50% of Jul-Oct rally). On the other hand, a break above 1147.69 (38.2% of July-Oct rally) could open doors for a re-test of 1156.70 (Sep 24 high).
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Source:: FX Street