Bullion Benefiting From Growth Fears

Gold prices are down 0.1% during the APAC session after rising 0.4% on Tuesday on lower US yields. It has benefited this week from global growth related flight to quality flows. Bullion has been trending down today after reaching a peak of $2002.56/oz earlier and are now $1995.54, close to the intraday low. They have been struggling to hold breaks above $2000. The USD index has been trading sideways.

• Resistance remains at $2015.10, the April 17 high.
• The market is waiting on some clarification on what the Fed is likely to do at its May 3 meeting from Q1 GDP (Thursday), PCE data and employment cost index (Friday), all due before the end of the week. Better gold prices indicate that market participants feel that the Fed is close to pausing.
• Later there are preliminary US durable goods orders for March. The headline is expected to rise 0.7% m/m while the core orders should fall slightly.