Gold drops 1% as treasury yields continue to rise

Gold prices dropped 1% in Asia as the treasury yields extended gains on expectations that increased spending by the Trump government would lead to higher inflation/interest rates.

Clocks fresh one-month low

Prices fell to a fresh one-month low of $1250.90/Oz levels in Asia. The metal has lost $80 over the last three days as the Trump government is widely seen boosting inflation, which would eventually force the Fed to move rates higher at a faster rate than previously expected.

The losses in Asia have been accompanied by a seven basis point rise in the 10-yr yield.

Gold Technical Levels

The metal was last seen trading around $1255 levels. A break below $1250.90 (session low) would expose critical support levels of $1246.26 (Oct 14 low) and $1241.50 (Oct 7 low). On the other hand, a break above $1261.90 (Oct 28 low) could yield a re-test of $1270 (5-DMA) and $1281 (10-DMA).