May 23, 2022 03:38 GMT
Gold is up a further 0.40% today, building on last week's gains of 1.92%, which was the strongest weekly performance for the metal since the start of March.
- Gold is trading back through $1850, its highest levels since May 12th.
- Concerns around the global growth backdrop, particularly last week with China growth downgrades and US business survey misses, has no doubt aided the safe haven appeal of the metal.
- The fact that growth concerns are creeping into US sentiment, which has been a headwind for USD performance, has also likely aided the turnaround. The DXY was down 1.35% last week, its first drop in 7 weeks.
- USD weakness has continued today (DXY off a further -0.44%).
- US real yields are unlikely to have been a key driver of gold sentiment, but stability in yields has also likely helped at the margin.