Bull Still In Charge With Key Resistance Levels In View

A narrow Asia-Pac session for spot, last dealing little changed just shy of the $1,870/oz mark after bulls failed to force a break of resistance in the form of the Jan 29 high ($1,875.7/oz) on Tuesday. However, bulls still remain in the ascendancy from a technical perspective, and a sustained break of that level would switch bullish focus to the 76.4% retracement of the Jan 6 to Mar 8 sell off ($1,892.7/oz). Please see MNI MARKETS ANALYSIS: Gold Bulls Continue To Shine (published on May 18) for a more detailed technical overview.

• The DXY is operating around multi month lows, while a weighted average of U.S. real yields (based on the weights deployed in the ICE-Bank of America MOVE Index) has consolidated at the lowest levels witnessed since Feb in recent days.
• ETF holdings of gold have started to tick back up in recent weeks after finding a base in late April, although that metric still sits ~16% off of its all-time high, which was registered back in October.