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16 Dec 2014
Gold shot up as Treasury yields and European stocks declined
FXStreet (Mumbai) - Gold prices shot up USD 18 in last hour or so as the European stock markets erased more than 1% gains to trade in the red, while the US treasury yields declined on safe haven demand.
Gold now trades 0.49% higher at USD 1213.60/Oz levels. Prices hit a high of USD 1223.80/Oz as the 10-yr yield in the US declined to 2.009%. Moreover, the sharp fall in the US treasury yields has weakened the US dollar index by 0.89% to 87.93 levels.
Meanwhile, the major equity indices in Europe erased gains to trade in red. The German DAX now trades 0.65% lower at 9265, while the London’s Ftse is now down 0.22% to trade at 6169.30. Consequently, the S&P futures in the US have weakened 0.59% to trade at 1971.65 levels.
Gold Technical Levels
Gold has an immediate resistance atg 1218.60 (5-DMA), above which prices may re-test the daily high of 1223.80. Meanwhile, support is seen at 1212.94 (10-DMA) and 1200.00 levels.
Gold now trades 0.49% higher at USD 1213.60/Oz levels. Prices hit a high of USD 1223.80/Oz as the 10-yr yield in the US declined to 2.009%. Moreover, the sharp fall in the US treasury yields has weakened the US dollar index by 0.89% to 87.93 levels.
Meanwhile, the major equity indices in Europe erased gains to trade in red. The German DAX now trades 0.65% lower at 9265, while the London’s Ftse is now down 0.22% to trade at 6169.30. Consequently, the S&P futures in the US have weakened 0.59% to trade at 1971.65 levels.
Gold Technical Levels
Gold has an immediate resistance atg 1218.60 (5-DMA), above which prices may re-test the daily high of 1223.80. Meanwhile, support is seen at 1212.94 (10-DMA) and 1200.00 levels.