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12 Dec 2014
Gold declines on upbeat US consumer sentiment report
FXStreet (Mumbai) - Gold prices are back into the red after the US Reuters/Michigan Sentiment Index in December came-in at 93.8; well above the expected print of 89.5.
The yellow metal is down 0.69% at USD 1217.20/Oz levels. The upbeat sentiment report triggered a minor recovery in the US stock markets, although major indices still trade in the red. Meanwhile, the 10-yr treasury yield in the US has recovered 3.5 basis points from the day’s low to trade at 2.145%. Consequently, the US dollar index recovered to trade marginally lower at 88.42 levels.
The yellow metal may extend losses if the equities in the US continue to recover, pushing the yields and the US dollar higher.
Gold Technical Levels
Gold has an immediate support located at 1209.72 (10-DMA), under which prices could test the psychological support at 1200.00. Meanwhile, resistance is seen at 1220-1221 (5-DMA and 100-DMA) and 1239 levels.
The yellow metal is down 0.69% at USD 1217.20/Oz levels. The upbeat sentiment report triggered a minor recovery in the US stock markets, although major indices still trade in the red. Meanwhile, the 10-yr treasury yield in the US has recovered 3.5 basis points from the day’s low to trade at 2.145%. Consequently, the US dollar index recovered to trade marginally lower at 88.42 levels.
The yellow metal may extend losses if the equities in the US continue to recover, pushing the yields and the US dollar higher.
Gold Technical Levels
Gold has an immediate support located at 1209.72 (10-DMA), under which prices could test the psychological support at 1200.00. Meanwhile, resistance is seen at 1220-1221 (5-DMA and 100-DMA) and 1239 levels.