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22 May 2015
Gold hits fresh session high
FXStreet (Mumbai) - Gold prices extended gains to trade at a fresh session high of USD 1213.4/Oz, as the greenback stays weak, while the benchmark bond yields in the major economies declined.
Gold: Gains capped at 10-DMA
The metal saw its gains being capped at 10-DMA located at USD 1213.4. The gains were largely driven by 0.37% weakness seen in the USD index. Meanwhile, the metal also received support from the weakness in the 10-year treasury yields; down 1.2 basis points at 2.174% and the German bund yields; down 2.9 basis points at 0.605%. The yellow metal is known to have an inverse relationship with long-term government bond yields.
Ahead in the day, the US CPI figures for the month of April could have an impact on the metal prices.
Gold Technical Levels
The immediate resistance is seen at 1213.35 (10-DMA), above which gains could be extended to 1218. On the flip side, a break below 1205.25 (100-DMA) could drive the metal lower to 1199.71 (50-DMA).
Gold: Gains capped at 10-DMA
The metal saw its gains being capped at 10-DMA located at USD 1213.4. The gains were largely driven by 0.37% weakness seen in the USD index. Meanwhile, the metal also received support from the weakness in the 10-year treasury yields; down 1.2 basis points at 2.174% and the German bund yields; down 2.9 basis points at 0.605%. The yellow metal is known to have an inverse relationship with long-term government bond yields.
Ahead in the day, the US CPI figures for the month of April could have an impact on the metal prices.
Gold Technical Levels
The immediate resistance is seen at 1213.35 (10-DMA), above which gains could be extended to 1218. On the flip side, a break below 1205.25 (100-DMA) could drive the metal lower to 1199.71 (50-DMA).