Bullion Stabilises But Struggling To Hold Above $2000

Gold prices fell 0.5% on Monday due to higher Treasury yields and US dollar following the robust Empire manufacturing index. Today it is 0.2% higher but struggling to hold above $2000/oz. it is currently around $1999.32, below the intraday high of $2001.86. The USD index is down slightly.

• While gold is struggling to rise beyond $2000, it is holding above support at $1981.70, the April 10 low, today. During Monday’s NY session it did break this level briefly reaching an intraday low of $1981.25. It remains well above the 50-day simple moving average.
• Gold has been softer in recent days due to higher US consumer inflation expectations and leading output indicators pointing to further Fed tightening. Recession risk provides support though.
• There are housing starts/permits data for March out in the US later, which are expected to decline on the month after a strong February. The Fed’s Bowman discusses central bank currencies as well.