Gold is reporting moderate losses despite the flatter yield curve and weak USD.
The uptick in the equities could be hurting the safe haven metal.
Gold’s (XAU/USD) is trading on the back foot amid risk-on action in the equity markets.
As of writing, the yellow metal is changing hands at $1,345 – down 0.20 percent on the day. Meanwhile, the S&P 500 futures are reporting a 0.27 percent gain.
However, Asian indices are trading mixed. For instance, Chinese stocks are down 0.34 percent and South Korea’s Kospi has shed 0.21 percent. On the other hand, Australia’s S&P/ASX 200 is up 0.30 percent, possibly due to RBA’s dovish take on the interest rates.
Gold’s decline is somewhat surprising as the relentless flattening of the yield curve is USD bearish. Also, the metal looks bullish as per the technical charts, but the breakout remains elusive.
Gold Technical Levels
A move above $1,350 (previous day’s high) could yield a re-test of supply around $1,362 (Feb. 16 high), above which a major resistance is seen at $1,365 (April 11 high). On the downside, breach of support at $1,341 (10-day moving average) would allow a drop to $1,333 (April 12 low) and $1,331 (50-day MA).