Bullion Continues Trending Higher Ahead Of Wednesday’s US CPI

Gold has been trending higher for most of the APAC session. On Monday it rose 0.2% reaching a high of $2029.39 and today it is another 0.2% higher and close to the intraday high at $2025/oz. The USD index is flat.

• Gold remains in an uptrend. It confirmed the resumption of the bull cycle when it broke through resistance at $2048.70, the April 13 high. The focus is on $2070.40, the March 8 high. On the downside, key support is at $1969.30, the April 19 low.
• Safe haven buying of bullion continues as concerns over global growth persist and nervousness regarding a US debt-ceiling agreement. The Economist is reporting that White House analysts are estimating that a limited “default” would cost the economy 0.6% of GDP, which could be enough to push it into recession.
• Later the Fed’s Jefferson and Williams, and the ECB’s Lane speak. Other than that the data calendar is quiet with only US NFIB small business optimism for April ahead of Wednesday’s April CPI data, which will be key to the immediate Fed outlook.