Gold prices are posting moderate gains in Asia, but these could be short-lived if the Treasury yields extend their two-day winning streak. The 10-year Treasury yield has risen by ten basis points in the last two days. The yellow metal, therefore, posted losses in the last two trading days and is expected to continue doing so if the 10-year moves past the previous day's high of 2.73 percent, which is likely to happen after Friday's big beat on the NFP.
Gold prices edged lower for the second day in a row as the yellow metal started to lose momentum. The price is currently holding above the $1312.38 level, and the downward move is more likely set to continue. We expect the correction to proceed during today's session and we will be focusing on the $1307.09 support level.
Support: 1316.78/ 1312.38
Resistance: 1326.29 / 1335