Gold shot up as Treasury yields and European stocks declined

Frankfurt (Dec 16)  Gold prices shot up USD 18 in last hour or so as the European stock markets erased more than 1% gains to trade in the red, while the US treasury yields declined on safe haven demand.

Gold now trades 0.49% higher at USD 1213.60/Oz levels. Prices hit a high of USD 1223.80/Oz as the 10-yr yield in the US declined to 2.009%. Moreover, the sharp fall in the US treasury yields has weakened the US dollar index by 0.89% to 87.93 levels.

Meanwhile, the major equity indices in Europe erased gains to trade in red. The German DAX now trades 0.65% lower at 9265, while the London’s Ftse is now down 0.22% to trade at 6169.30. Consequently, the S&P futures in the US have weakened 0.59% to trade at 1971.65 levels.

Gold Technical Levels

Gold has an immediate resistance atg 1218.60 (5-DMA), above which prices may re-test the daily high of 1223.80. Meanwhile, support is seen at 1212.94 (10-DMA) and 1200.00 levels.

Soiurce: FXstreet