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16 Jan 2015
Gold dips in Asia
FXStreet (Mumbai) - Gold prices dipped in Asia despite weakness in the US treasury yields and Asian equity markets as bulls appear exhausted after a USD 25/Oz gain witnessed on Thursday.
The yellow metal currently trades 0.31% lower for the day at USD 1260.90/Oz levels, compared to the previous session’s close at USD 1264.80/Oz. The metal dipped slightly even though the 10-yr treasury yield in the US is down 4.2 basis points to 1.733%. Meanwhile, most of the Asian equity markets are trading in red, taking cues from the overnight weakness on Wall Street. The Australian markets are down 0.85%, while the Hang Seng is down 0.57%. Japan’s Nikkei shed more than 2% due to the strength in the Yen, while the Shanghai composite is up 0.89%. The weakness seen in the Asian equities is supporting gold prices to some extent.
The yellow metal may extend gains as bond yields across Europe continue to fall to record lows after Swiss National Bank (SNB) pushed the interest rate further into the negative territory at -0.75%.
Gold Technical Levels
The metal closed above the 200-DMA level located at 1244.57. The immediate resistance is seen at 1266.9, above which gains could be extended to 1272.5. Meanwhile, support is seen at 1250.00 and 1244.57 levels.
The yellow metal currently trades 0.31% lower for the day at USD 1260.90/Oz levels, compared to the previous session’s close at USD 1264.80/Oz. The metal dipped slightly even though the 10-yr treasury yield in the US is down 4.2 basis points to 1.733%. Meanwhile, most of the Asian equity markets are trading in red, taking cues from the overnight weakness on Wall Street. The Australian markets are down 0.85%, while the Hang Seng is down 0.57%. Japan’s Nikkei shed more than 2% due to the strength in the Yen, while the Shanghai composite is up 0.89%. The weakness seen in the Asian equities is supporting gold prices to some extent.
The yellow metal may extend gains as bond yields across Europe continue to fall to record lows after Swiss National Bank (SNB) pushed the interest rate further into the negative territory at -0.75%.
Gold Technical Levels
The metal closed above the 200-DMA level located at 1244.57. The immediate resistance is seen at 1266.9, above which gains could be extended to 1272.5. Meanwhile, support is seen at 1250.00 and 1244.57 levels.