Gold prices crash down to 1,490 giving up over $12 the last hour as the strong rally in US Treasury bond yields and risk on sentiment drives traders away from safe-haven assets such as gold and Yen. Gold helped by weaker US macro data last week which further increased the bets on interest rate cut by Fed later this week. The ECB kept interest rates unchanged and continued its bond repurchase program of €20billion per month. Geopolitical tensions eased in Syria, after USA lifted the sanctions on Turkey as it complied with the ceasefire agreement.
Gold trading 0.79% lower at $1,492 as the precious metal momentum turns bearish after the price breached the $1,500 mark, while as of writing, gold has also breached below the 20-day moving average at 1,492.
On the downside, first support for gold now stands at $1,490.64 daily low and then $1,487.1 the dail low from October 24th. Gold has established a strong support zone at $1,458 October low. The precious metal remains well supported by weak global economic data, tensions in Syria and protests in Chile and Hong Kong. On the upside, the immediate resistance would be met at $1,508.15 today’s high while a move above will open the way for a move up to $1,519 high from October 3rd.