Bullion Falls Again As USD Rallies

Gold prices are down again during the APAC session by 0.4% to around $1900.40/oz, close to the intraday low of $1899.33. Earlier in the session bullion reached a high of $1910.38. The pullback has been driven by a stronger USD (DXY +0.4%) in response to unchanged core BoJ monetary policy settings.

• Gold is off 1.4% from Monday’s high of $1929.03/oz but still well above support at $1874.40, the January 12 low. It remains in a bullish trend and higher highs and higher lows are expected.
• There is a busy data schedule in the US today with the focus likely to be US December retail sales and PPI. Retail sales are expected to post another monthly decline, while the core PPI is also projected to decline on the month. December IP is forecast to fall again while inventories are should rise. The NAHB housing market index and the Fed’s Beige Book are also scheduled to be released.