March 13, 2023 04:33 GMT
Benefiting From Continued USD Pullback, But Some Resistance Ahead of $1890.
Metals bulletEM BulletFixed Income NewsHomepageCommoditiesBulletMarketsEmerging Markets NewsForeign Exchange News
Gold continues to recover, up a further 0.80% so far today. We have gotten close to $1890 on a couple of occasions but there appears to be some resistance ahead of this level. We last tracked at $1882. The $1890 region represents highs from early February for the precious metal, so may be acting as a near term resistance point.
- Gold is back above all key EMA levels. Beyond $1890 lies the $1900, which we haven't been above since early February.
- Gold's move higher today is in line with USD weakness, with the BBDXY off by around 0.80% at this stage. Reduced risk aversion, evidenced in the equity space, is not diminishing gold demand from a reduced safe haven demand standpoint, although this may have helped limit gains beyond the $1890 level.
- The bigger driver is the weaker USD trend and yield pull back.