NEW YORK (Scrap Register): Rising U.S. Treasury yields thwarted gold’s attempt to bounce during Asia-Pacific hours, said Sam Laughlin, senior trader with MKS (Switzerland) S.A.
“Headlines out of China regarding tariff concessions on U.S. products weighed upon the greenback around the Chinese open, supporting bullion price action to take the yellow metal to the session high of USD $1,294.10,” Laughlin added.
The bid tone was, however, short lived as the U.S. 10-year yield broke above 3.11%, paring gains and taking the yellow metal underneath $1,290 leading into European trade.
Laughlin puts near-term support for gold around $1,285.50 and below this $1,278, adding that a break through these levels could mean an extension toward $1,250.
“Bulls will be looking toward geopolitical tensions to halt the yellow metal's slide against the rampant greenback; however, layered offers from $1,295 [to] $1,300 will be difficult to break through,” Laughlin added.
As of 7:34 a.m. EDT, spot gold was down $2.30 to $1,288.40 an ounce.