Gold drops on Dollar strength, treasury yields rise

Gold prices dropped as the sell-off in the Euro triggered broad based USD weakness, while the treasury yields rose.

Offered at 5-DMA

The metal was offered at the 5-DMA level of $1170 earlier today and fell to a four-day low of $1164.90. Prices deflated from the high of $1178.68 on dollar strength on Thursday.

The dollar index strengthened 0.20% to 101.30, largely on the back of a drop in the EUR/USD below 1.06 handle.

Meanwhile, gold is also under pressure due to a 4.5 bps rise in the US 10-year Treasury yields. The metal remains at the mercy of the action in the US dollar and Treasury yields.

Gold Technical Levels

The metal was last seen trading around $1168/Oz. A break above $1170 (5-DMA) could yield a rally to $$1175 (10-DMA), above which a major hurdle is seen at $1200. On the lower side, a break below $1164.90 (session low) would expose support at $1160.95 (Dec 1 low) and $1157.30 (Dec 5 low).