Gold still under pressure near $1,320/oz
- The ounce troy of the yellow metal trades within range near $1,320/oz.
- Higher USD, US yields keeps the metal under pressure.
- US Initial Claims, Trade Balance and Durable Goods Orders expected today.
The demand for the yellow metal stays subdued so far this week, dragging the ounce troy to the lower end of the range near the $1,320 area.
Gold looks to USD, yields
Bullion is losing ground for the second session in a row so far today, putting the $1,320 area to the test amidst firmer US yields and the continuation of the rally in the greenback.
In fact, yields of the key US 10-year benchmark keep consolidating above the critical 3.0% level, area last visited in 2014, as market participants shifted their focus on monetary policy and the likeliness of 4 hikes by the Federal Reserve this year.
Additionally, the US Dollar Index trades in fresh 3-month peaks above the 91.00 barrier, extending the up move for the second week in a row after bottoming out in the 89.20 area (April 18) and keeping depressed the risk-associated space.
Later in the session, the ECB meeting will take centre stage seconded by US Goods Trade Balance figures, Initial Claims and Durable Goods Orders during last month.
Gold key levels
As of writing Gold is down 0.06% at $1,322.65 and a breakdown of $1,320.59 (low Apr.6) would expose $1,307.29 (low Mar.20) and then $1,303.65 (200-day sma). On the upside, the next hurdle lines up at $1,336.51 (21-day sma) seconded by $1,355.67 (high Apr.18) and finally $1,356.86 Mar.27).