Bounce From Recent Lows Extends

Early NY moves in the USD, FOMC-dated OIS and U.S. Tsy yields, which extended in the wake of an ISM manufacturing survey which that all of the major sub-metrics print below the breakeven 50 mark, resulting in a slightly softer than expected headline reading, allowed spot gold to briefly show above $1,930/oz, before backing off to print around $1.925/oz at typing. The move extends the bounce from last week’s low, after bears failed to challenge initial key support in the form of the 15 March low ($1,885.8/oz). Bulls need to overcome the 20-day EMA/May 24 high ($1,935.1/1,985.3) to start turning the technical tide more in their favour, as current gains are still deemed corrective.