Recovers Modestly

Gold is up slightly today, +0.20%, to be back close to $1854, but we remain comfortably within recent ranges.

• For the most part, Gold has followed broader USD sentiment today. The early dip below $1850 coincided with some USD strength but the DXY is now -0.30% below the NY closing level, hence the precious metal's recovery.
• Equity sentiment in the region has been strong, with HK and China related markets leading the move higher. This has likely capped Gold's rebound to degree from a risk sentiment standpoint. US equity futures are lower, but only slightly.
• US yields have edged down in the 2yr, but the 10yr has remained steady. The real US 10yr continued to ease overnight, down to 0.13%. This is likely to help keep a floor under gold demand. Dips back to $1840 are generating support.