Gold: headed for a break below $1,280 near-term psychological support?
Gold was pressured yet again on Wednesday on higher stocks and dollar with the US 10yr yields up from 2.24% to 2.31% at a two-month high.
Markets were generally higher all around, seen in Wall Street's optimism over fiscal progress with the corporate tax rate proposed at 20% from 35%. The Fed fund futures yields continued to price the chance of a December rate hike at 76%, weighing on the yellow metal.
December gold dropped $13.90, or 1.1%, to finish up the US session at $1,287.80 an ounce. This was the lowest settlement since mid-August.
Spot gold fell from 1289.85 in late London to 1283 the low y the close of play in NY while the DXY rallied 0.5% to a one-month high. Gold bugs are surely bugged out as there are very little signs of support en-route for a break of 1278.80 spot - a former key area of resistance.
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More Gold levels
Gold remains in bearish territory below the rising channel's trend support line, (23.6 Fibo), around 1323. To the downside, the 38.2% Fibo level of the rise measured between 1204.81 to 1357.53 at 1299.20 was broken and bears have sights on 1280 as a near-term psychological support level and then 1278.80 ahead of 1263.85 26th Feb highs. Gold bulls need to get back above the double top highs, being the 1334 zone, for a defining change of course.