Gold Price Heads for 3rd Straight Gain as U.S. Dollar Slips


Gold prices edged higher for a third straight day early Wednesday, pushing the precious metal further above a oneweek peak and toward a fiveweek high, as a rise in bond yields was overshadowed by weakness in the U.S. dollar.

However, some experts warn that the precious metal is vulnerable to sharp pullbacks, amid a period of recently listless trade, leading into the presidential elections in the U.S. set for Nov. 3, and as bond yields gain more altitude.

Chintan Karnani, chief market analyst at Insignia Consultants, says that a rise in Treasury prices, a firmer dollar or a selloff in industrial metals, all could ignite a sharp move in bullion and points to a number of technical levels that traders need to watch.

What gold needs to do to rise further gold has to trade over 19301935 zone to rise to 1960, the analyst said. Key price is 1930 if gold does not break 1935 by tomorrow then get ready for a move back to 1880, he cautioned.

Early Wednesday the 10year Treasury note yield was up 2.4 basis points to around 0.81. But gold investors appeared to be focusing on a 0.4 move lower in the dollar, as gauged by the ICE U.S. Dollar Index.

Rising yields can undercut appetite for gold, which doesnt bear a coupon, while a weakening dollar can stoke demand in dollarpegged precious metals among buyers using alternative currencies.

December gold was up 12.10, or 0.6, at 1,927.50 an ounce, following a gain of 0.2 on Wednesday, bringing the precious metal to around its highest…


Please enter your comment!
Please enter your name here