Loses Further Momentum

Gold has spent much of the Asia session on the back foot, dipping to $1846, close to 0.40% below NY closing levels at the time of writing. The overnight low was just below $1845.

• Today's price action has been against a mixed cross asset backdrop. Regional Asian equities are firmer/resilient, while US equity futures have drifted lower through the afternoon session.
• US yields have been fairly steady, but that mirrors the overnight session, with the 10yr holding fairly close to 2.75%. US real yields edged down overnight to 0.19%, we were at 0.26% at the start of the week. This didn't sentiment much overnight in gold though.
• The USD is mixed, with the DXY a touch higher, while A$ and NZD have drifted down. USD/CNH is up close to 0.50% on the day, as China growth concerns have weighed. By extension this should weigh on the global growth outlook but this hasn't helped haven demand for gold today.