Gold prices are currently trading near $1,780 which fell down to a 2-1/2 month low yesterday due to strength in dollar index and rally into US Bond yields. However gold losses were limited after selling into Equities which supported safe haven appeal for precious metal.
Global government bond yields rose to their highs. The 10-year US T-note yield on Wednesday initially rose to an 11-1/2 month high of 1.331% before falling back. The 10-year UK gilt yield rose to a 10-3/4 month high of 0.643% Wednesday, and the 10-year German bund yield climbed to an 8-1/4 month high of -0.330%.
On economic data front, U.S. Jan retail sales rose +5.3% m/m and +5.9% m/m ex-autos, against expectations of +1.1% m/m, Jan manufacturing production rose +1.0% m/m, against expectations of +0.7% m/m and the Feb NAHB housing market index unexpectedly rose +1 to 84 against expectations of unchanged at 83. US Jan PPI ex-food & energy rose +2.0% y/y, stronger than expectations of +1.1% y/y and the largest increase in 16 months.
Meanwhile, Fed minutes are positive for gold prices. Fed officials did not see the conditions for reducing their asset-purchase program being met for "some time.” It likely to support lower interest for longer term and liquidity conditions are not likely to change in near future.
Gold prices may find support near $1,762-$1,752 while key resistance level is seen around $1,804 and $1,823