Gold Prices Remain Under Pressure In Asian Trading
“Gold edging lower in early Asian trading,” said MKS PAMP Group trader Tim Brown. “The precious complex pulls back as the equities rally continues and US treasury yields surge.”
Asian shares were just below their 2007 record high on Wednesday, Reuters reported, noting that MSCI’s index of Asia-Pacific shares outside Japan was largely flat, just 0.4% below its record high seen in November 2007. Also, Japan’s Nikkei was largely unchanged, near a 26-year high reached in the previous session.
U.S. equities also rallied on Tuesday, with both the S&P 500 and Nasdaq hitting new record highs for the sixth session in a row, while the benchmark U.S. Treasury yields posted a 10-month high.
“There continues to be little risk aversion in the world marketplace, at present, and that’s a negative element for the safe-haven gold and silver markets,” said Kitco’s senior technical analyst Jim Wyckoff.
“[Gold] bulls still have the overall near-term technical advantage, amid a four-week-old uptrend in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,280.00,” Wyckoff added.