Gold Falls Below US$ 1650/oz Globally, US Dollar steady At 113.79

International gold markets remain under pressure today in the late trading hours. In the Comex futures, gold falls to US$ 1,649.30 as the day-low. On the other hand, the US Dollar index is steady at 113.79 as a safe haven asset. Till today, the yellow metal fell by 11.11% this year in the futures market. This month has been a major struggle for the yellow metal in the commodity market. In September, gold fell to around US$ 1633/oz, from the month's high at US$ 1749/oz. Futures investors are getting an opportunity to buy more gold at cheaper prices, however, traders are a bit worried.

Meantime, the 10-year U.S. Treasury yield is gaining significantly. Currently, it is fetching around 3.836% after increasing above 4.0% overnight. Similarly, the 2-year Treasury bond yield is fetching around 4.4%. The last few interest rate hikes by the US Federal Reserve have helped the US Dollar and US bond yield to rally, keeping the gold and silver markets under pressure. Gold is a Dollar dominated asset class. Hence, as the US Dollar rises, gold rates tend to fall globally.

Today, the Comex gold futures were quoted at $1,657.20/oz, down by 0.77%, till last traded. Yesterday it was last traded at $1,670/oz. The spot gold prices were last quoted at $1655.40/oz, down by 0.34%, from the last trading day. On the other hand, the US Dollar index gained to 113.09, up by 0.43%, till last traded. Today, in India, the Mumbai Commodity Exchange (MCX) gold in October future is quoted at Rs. 50129/10 grams, down by 0.11%, from the last trading day.

Giving investors an outline of the gold market, analyst Jim Wyckoff told the Kitco News, "Technically, the December gold futures bears have the solid overall near-term technical advantage. Prices are in a downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at this week's high of $1,671.60 and then at $1,685.00. First support is seen at the overnight low of $1,649.30 and then at this week's low of $1,622.20."

The currency extension of losses in the gold market, however, is expected to boost the retail gold sales in the Indian domestic markets, during the festive seasons. In India, today, the 22 carat gold rate is quote at Rs. 46400/10 grams.