Gold ticks higher on USD weakness

Gold prices ticked higher to $1260/Oz levels on the back of a broad based USD weakness despite steepening of the treasury yield curve.

Gold resilient to steeper yield curve

At the time of writing, the 2-yr yield which mimics short-term rate hike expectations was trading dead flat. Meanwhile, the 10-yr yield was up one basis point, while the 30-y yild was up 1.5 basis points.

However, the steeper yield curve has not resulted in a breakdown in gold. Moreover, the American dollar too is not being helped by a stpper yield curve.

Gold Technical Levels

A break above immediate resistance at $1265.40 (Oct 7 high) would open doors for $1277.16 (Oct 5 high). On the lower side, $1253 (23.6% of 2011 high – 2015 low) if breached would expose $1245.80 (Friday’s low).