Gold regains $ 1190 amid retreat in treasury yields

Gold is seen reversing a dip to low and now jumps back above 1190 levels, as a retreat in the shorter duration treasury yields offer some support to the bulls.

Gold awaits US GDP

Currently, Comex gold futures trade modestly higher at 1193, heading for a test of 10-DMA located at 1196.40. Gold prices remain better bid amid a brief phase of consolidation seen in the US dollar against its major rivals, while a fresh move lower in the treasury yields also buoy the sentiment around the non-yielding asset, gold. The 2-year treasury yields, which mimic the short-term interest rate expectations, drop -0.72% to trade around 1.103%.

Moreover, mixed sentiment seen around the Asian indices, also boosts the demand for gold as a traditional safe-haven asset.  Looking ahead, the bullion awaits the release of the all-important US prelim GDP report and consumer confidence data due later in the NA session. Besides, a slew of Fed speaks will also remain in the spotlight for any hints on Fed’s further rate hike prospects.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1200 (key resistance) and 1210 (round figure). Meanwhile, the support stands at 1186.70 (5-DMA) below which doors could open for 1177 (multi-month low).

To learn more about this topic, check our video analysis