Gold consolidates near 9-month lows amid rally in treasury yields

A minor-recovery seen in gold after the Fed minutes release lost pace near $ 1191 levels, sending the bullion back towards multi-month lows struck at $ 1181 in the US last session.

Gold knocked-off as Fed indicates Dec Fed rate hike

Currently, Comex gold futures trade -0.37% lower at $ 1183.45, unable to chew the offers placed at 1190 over the last hour. Gold prices remain under pressure as the shorter duration treasury yields rally hard, after the Nov Fed meeting minutes revealed that it would be appropriate to hike rates relatively soon, as the members generally agreed that the case for an increase in the Fed Funds rate had continued to strengthen. 

The 2-year treasury yields, which mimics short-term rate hike bets, rise +3.30% to 1.31%, while US dollar extends its bullish consolidation phase against its major peers, now hovering near multi-year highs of  101.96.

Markets will continue to track the broader market sentiment and USD price-action for further moves on gold prices, as low volumes and minimal volatility is likely to persist as the US celebrates Thanksgiving Holiday.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1200 (key resistance) and 1206.34 (daily R1). Meanwhile, the support stands at 1181 (multi-month low) below which doors could open for 1170 (daily S2).

To learn more about this topic, check our video analysis