Bullion Remains Close To Multi-Month Highs, Waiting For Key US Events

MNI (Australia) - Gold prices are higher again today up 0.4% after Tuesday’s 0.85% rise. It is now trading around $1846/oz, close to the mid-June highs, and down slightly on the intraday high of $1847.21 but well above the low of $1836.32. The USD has been trading sideways but UST yields are lower.

• On Tuesday bullion reached a high of $1849.98 while resistance stands at $1857.60, the June 16 high. Trend conditions for gold remain bullish. The current rally is being driven by expectations of the Fed becoming less hawkish, warnings of upcoming recessions and the spread of Covid through China.
• Later today the FOMC meeting minutes are published, as well as the December manufacturing ISM. Any signals of a less hawkish Fed should be good for gold prices. The other key event for the week is Friday’s payroll data for December, which is expected to post a 200k gain and average hourly earnings are forecast to ease only slightly to 5% y/y (bbg).