Gold- above 1-hr 100-MA, clocks three-day high

Gold clocked a three-day high of $1221/Oz in Asia and was last seen trading above the hourly 100-MA level of $1218.45.

Gold rises as the Treasury yields retreat

The treasury yields in the US dropped after news of Earthquake and Tsunami warning in Japan boosted haven demand for the US debt. The yield on the 10-year note was last seen trading four basis points lower on the day around 2.294%.

The yield on the 2-year note was down almost two basis points. The metal thus strengthened to a high of $1221. The data docket is thin across Europe and in US. Consequently, the action in the treasury yields is likely to guide the yellow metal traders.

Gold Technical Levels

The immediate resistance at $1229 (10-DMA) if breached would open doors for a rally to $1233.10 (Nov 16 high). Further gains could run into hurdle at $1241.50 (Oct low). On the other hand, a breakdown of support at $1218.45 (1-hour 100-MA) would expose support at $1213.20 (session low) and $1205.83 (previous day’s low).