Bullion Stabilising After A Weak Month Driven By Fed Hawkishness

Gold prices have stabilised this week rising 0.3% on Monday and are down 0.1% so far during APAC trading. Bullion has been in a narrow range and is currently around $1815.00/oz, close to the intraday low, after a reaching a high of $1819.43 earlier. The USD index is up 0.1% and US yields are marginally lower.

• Trend conditions for gold remain bearish and close to the 2023 lows as Fed talk remains hawkish. Bullion had been trending higher since November. Prices are now approaching the 100-day moving average after breaking through the 50-day earlier in February.
• Bloomberg is reporting that there were net outflows from gold-backed ETFs on every day in February except for three and that holdings are close to their lowest since April 2020.
• A number of second tier data releases are out in the US later today. There are the January trade balance and wholesale inventories, February consumer confidence, Chicago and Richmond indices, and December house prices. The Fed’s Goolsbee also speaks.