Advance Takes A Breather

Gold is little changed in the Asia-Pac session, after closing unchanged at $2382.89 on Tuesday.

• Bullion proved resilient in the face of Fed Chair Powell’s "lack of further progress on inflation" comment, which pressured US Treasuries.
• The DXY was also firmer on Powell's comments amid expectations the ECB, the BoC, and possibly the BoE could cut before the Fed. USD-JPY also edged up on expectations the BoJ will remain accommodative.
• The yellow metal is up around 15% YTD, with the advance partially driven by haven demand as geopolitical tensions in the Middle East and Ukraine continue to percolate.
• According to MNI’s technicals team, attention remains on $2452.5, a Fibonacci projection. Initial firm support is at $2276.1, the 20-day EMA.
• After outperforming on Monday, silver fell 2% yesterday to ~$28/oz, leaving the metal around 5% off its recent 3-year high.