Dips Supported In Asia

Gold is modestly higher, recovering from an earlier dip to $1850. We are now back above $1856, +0.15% above the NY close.

• Today's recovery in gold coincided with a trough in EUR, although the rebound in the precious metal has outperformed FX moves. This may owe to the general softening tone seen throughout regional equity markets as today's session has progressed, which has likely aided safe haven demand.
• US equity futures remain in negative territory (albeit off worse levels), while UST yields have drifted lower.
• If gold can continue to recover, the post-Asia close from yesterday around $1865 will be eyed. Gold ran out of steam overnight as equity sentiment improved and US real yields edged higher. These factors outweighed continued softer USD sentiment.