Dollar Gained, Gold Fell

Dollar Gained, Gold Fell

Dollar Gained, Gold Fell

Gold traded just below $1,820 an ounce on Tuesday, easing from recent highs as US Treasury yields and the dollar gained on firm hawkish expectations from the Federal Reserve. The benchmark 10-year Treasury yield climbed to pre-pandemic highs above 1.8%% this week, while the dollar index recouped some losses to trade back above the 95 level. The moves came after Fed chair Jerome Powell said last week that the US economy was ready for the start of tighter monetary policy, with other Fed officials signalling the first potential rate hike in March. The US consumer price index also rose 7% in December from a year earlier, accelerating at its fastest pace in nearly four decades and bolstering the case for a more aggressive tightening by the Fed.

Gold traded just below $1,820 an ounce on Tuesday, easing from recent highs as US Treasury yields and the dollar gained on firm hawkish expectations from the Federal Reserve. The first resistance will be $1832 on a further rise and first support will be $1799 on a decline.

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