Gold loses altitude as FBI clears Clinton again

Gold gapped lower in Asia, while the treasury yields spiked after the FBI said there is no criminality in Clinton emails. 

Yellow metal drops 1%

At the time of writing, the safe haven yellow metal was down 1% to $1292/Oz levels. Prices clocked a low of $1287.40 levels earlier today. Meanwhile, the US 10-yr treasury yield was trading almost 5 basis points higher at 1.83%. 

The dramatic shift in the broader market sentiment is the result of FBI granting clean chit to US Presidential candidate Clinton. Last week, the markets had turned risk-off as the FBI probe of Clinton saw Trump gain ground in the polls. 

Gold Technical Levels

The immediate resistance is seen at $1296 (5-DMA + 50-DMA), above which $1300 would come into play. A break higher would expose $1308 (Nov 2 high). On the other hand, a breakdown of support at $1287.40 (daily low) would open doors for a slide to $1278 (200-DMA) and $1261.90 (Oct 28 low).