Attempting A Break Above The Simple 50-Day MA

Gold is off NY closing levels by around 0.50%, unwinding a small proportion of Friday's +3.2% gain. This puts the precious metal back near $1673.50, which is line with some recovery in broader USD sentiment through the first part of today's session.

• Gold currently sits close to the simple 50-day MA ($1673.8), which has proven a reasonable resistant point going back to mid-April.
• A clean break above this level and through Friday's highs above $1680 would leave us targeting the 100-day MA around $1718.80. The recent bounce in gold has outperformed the trend in US real yields, although we remain closely aligned with USD sentiment.
• On the downside, support has been evident today ahead of the $1670 level, which is where a number of earlier highs in October/early November were recorded.