Gold comatose near 27-month high

Gold prices are trading in the sideways manner around $1368/Oz levels after having clocked a 27-month high of $1375 on Wednesday.

Weak treasury yields cap losses

The 10-yr treasury yield is down more than two basis points, while the 30-yr and 2-yr yields are down 2.6 and one basis point respectively. The weakness in the treasury yields is capping the losses in the yellow metal.

Furthermore, the Asian stocks markets are trading on a weak footing and that may be helping gold maintain the bid tone. However, the bullish momentum appears to have run out of steam following a five-day winning streak.

The Fed minutes release turned out to be a non-event for the markets. Hence, the metal remains the mercy of the overall market sentiment ahead of Friday’s non-farm payrolls release.

Gold Technical Levels

The immediate resistance is seen at $1375 (previous day’s high), above which prices could target $1378-1380 (38.2% of 2011 high – 2015 low). A break higher could yield $1400. On the lower side, $1358 (Jun 24 high) is a strong support under which prices could test $1337 (10-DMA). A violation there could yield $1315 (June 16 high).