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Gold rises to USD 1240/Oz levels

FXStreet (Mumbai) - Gold prices advanced taking cues from a sharp fall in the US treasury yields after the disappointing Us advance retail sales data in the US hit the wires.

The yellow metal now trades 0.49% higher at USD 1240.50/Oz levels, compared to the previous session’s close at USD 1234.40/OZ levels. The metal gained strength tracking the decline in the US 30-yr treasury yield to a record low of 2.458%. On similar lines the US 10-yr yield also weakened to 1.784%. The drop in the Treasury yields pushed the USD index below 92.00 levels; down 0.58% for the day at 91.91 levels.

Furthermore, the S&P futures have extended losses to trade 1.19% lower at 1991.95 levels. A weak start to the equities is likely to push up Gold prices.

Gold Technical Levels

The immediate resistance is seen at 1244.615 (200-DMA), above which gains could be extended to 1255.1 (Oct. 21 high). Meanwhile, support is seen at 1234.40 and 1230.62 (5-DMA) levels.

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