Gold regains poise amid losses in European equities

• Gold regains bid tone in Europe.
• Equities drop in early trade.

Gold is mildly bid in Europe, possibly due to moderate losses in the European equities.

As of writing, the metal (XAU/USD) is trading at $1314/Oz levels; up 0.23 percent on the day. Prices hit a one-week low of $1308.22 in Asia, tracking the rise in the US 10-year treasury yield to 2.57 percent (highest level since March).

The recovery is likely driven by risk-off activity in the equity markets. For instance, Germany's DAX is down 0.30 percent. The pan European Stoxx 50 index is down 0.20 percent. This may have boosted demand for the safe haven yellow metal.

Also, the greenback has surrendered gains despite hardening of the Treasury yields, thus gold is attempting gains. Ahead in the day, action in the stock markets and comments from Fed officials could influence the yellow metal.

Gold Technical Levels

A break below $1304.77 (23.6% Fib R of December low - January high) would open up downside towards $1299.24 (Nov. 27 high) and $1291.60 (38.2% Fib R). On the higher side, a move above the 5-day MA level of $1316.26 would expose $1323.44 (Jan. 5 high) and $1326.04 (Jan. 4 high).