A Little Higher In Asia As Dollar Eases

Gold sits $3/oz firmer to print $1,743/oz at typing, a little shy of best levels, operating comfortably within Thursday’s range at typing. The precious metal has caught a minor bid amidst a downtick in the USD, with the DXY off worst levels, but operating below the 107.00 handle at typing.

• To recap Thursday’s price action, gold closed $1/oz higher, edging away from Wednesday’s nine-month lows, narrowly snapping a three-day streak of losses in the process. The flat performance in gold came as the DXY struggled to break through Wednesday’s 20-year highs, mixing with a limited downtick in U.S. real yields.
• Gold nonetheless remains on track for a fourth weekly decline, the longest such losing streak since mid-May, as focus remains squarely on DM central bank hawkishness, countering wider recession-related worry.
• From a technical perspective, conditions remain bearish for gold. A break of initial support at $1,753.1/oz (Dec 15 ‘21 low) was broken prior, exposing support at $1,721.7/oz (Sep 29 ‘21 low). On the other hand, resistance is seen at $1,787.0/oz (May 16 low and recent breakout level).