Gold slides on Dollar strength

Gold prices retreated in Asia as strength in the treasury yields pushed the USD index higher.

Nears 50-DMA

At $1333/Oz, prices are trading within a striking distance from 50-DMA support of $1329. Expectations that Fed chairwoman Yellen could drop hint of a rate hike pushed up treasury yields in the US.

This pushed up US dollar index by 0.40%. In response to that gold prices retreated by 0.70%. Given the empty data calendar, the metal remains at the mercy of the action in the US treasury yields.

Gold Technical Levels

Breach of immediate support of 50-DMA at $1329 would open doors for a drop to $1320 (July 14 low). On the higher side, violation at daily high of $1341 would open doors for test of $1352 (Friday’s high).