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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GOLD
Gold dipped below $1725 in early trade, but we recovered from there and now sit back above $1727. This follows a volatile overnight session, where the precious metal ultimately lost just under 0.50%. Current levels are slightly above the NY close.
- Support is still evident for gold in the low $1720 region. This coincides with lows from late September last year. As we noted yesterday beyond that is the $1690 low from August last year.
- Cross asset drivers have been mixed today. The USD has lost a little ground against higher beta plays, with firmer equities evident in the region and in terms of US futures.
- Overall moves are modest though. US yields are relatively steady. Overnight , the US real yield edged down a touch to 64bps, although it remains fairly close to recent highs.
- No doubt the market is waiting for tonight's US CPI report. Recent upside surprises on CPI have produced downside momentum in gold, see the chart below.
- This chart plots spot gold prices against US CPI release dates, with green dollar symbols representing months where inflation has surprised on the upside relative to expectations.
Fig 1: Gold & US CPI Releases In 2022
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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