Back-To-Back Gains, But Trend Still Down

Gold is little changed in the Asia-Pac session, after closing 0.6% higher at 1919.35 on Friday.

• Economic data was mixed on Friday with real personal spending stagnant in May after downward revisions in April, indicating a notable decline in consumer spending during Q2. On the other hand, the UofM's consumer sentiment index showed signs of improvement towards the end of June.
• US tsys finished trading ahead of the weekend mixed with yields 4bp cheaper to 4bp richer. The short end underperformed with the 2-year yield finishing 4bp higher. Yields at the long end declined on slowing inflation, with the US tsy curve inverting to -106bp.
• The positive close Friday snaped a ten-session losing streak for gold, but the bounce looked shallow at current levels. According to MNI’s technical team, the outlook remains negative absent any break of $1930.61 - the June 27 high - and the 100-dma of $1944.47.
• Elsewhere, Bloomberg reported that money managers have decreased their bullish gold bets by 8,154 net-long positions to 86,472, weekly CFTC data on futures and options show.The net-long position was the least bullish in 15 weeks.