Gold trades in the red despite risk-off action in stocks

• Gold under pressure despite risk aversion.
• Rising yields could be hurting the zero-yielding metal.

Gold (XAU/USD) finds no takers in Asia despite Friday's sell-off in the equities and the weakness in the Asian markets.

As of writing, the zero-yielding safe-haven metal is changing hands at $1330 - down 0.30 percent on the day.

US stock markets fell sharply on Friday after the strong wage growth figures and fiscal deficit concerns pushed the 10-year yield well above 2.8 percent; the highest level since 2014. The rising yields spooked investors, leading to a 2.12 percent drop in the S&P 500 index.

Still, the yellow metal is trading in red, possibly because the solid rise in the treasury yields makes the zero-yielding safe-haven metal unattractive.

Ahead in the day, the rising yields could continue to put pressure on the metal. However, worsening of the risk aversion could lift the safe haven metal.

Gold Technical Levels

A break below $1328.99 (Fri's low) would open doors for $1316.22 (38.2% Fib R of Dec-Jan rally) and $1308.22 (Jan. 10 low). On the higher side, breach of resistance at $1335.29 (23.6% Fib R of Dec-Jan rally) and $1342 (10-day MA) and $1350.13 (Feb. 2 high).