Gold trims losses, trades around $1220

Gold flirted with 50-DMA at $1215 levels throughout European session, before recovering losses on the back of a dip in treasury yields.

Gold down 0.28%

The metal is still trading with moderate losses, although a 2 basis points drop in the 10-yr treasury yield is ensuring prices avoid a fresh drop to 50-DMA. The metal usually responds positively to treasury prices (negatively to yields).

Meanwhile, flat action in the dollar index is offering no clues to the yellow metal traders. Ahead in the day, focus is on the US factory orders and US equity markets. Traders are likely to remain cautious ahead of the FOMC minutes due later this week.

Gold Technical Levels

The immediate support is seen at $1215 (50-DMA), under which prices could drop to $1200. A break lower would expose $1191.53 (Oct 15 high). On the higher side, a break above $1225.61 (Mar 15 high) would shift risk in favor of a rise to $1244.12 (Mar 30 high) and $1253.32 (Feb 24 high).