Bullion Stabilising After Safe Haven Flows Pulled Back

Gold fell 1% on Monday reaching a low of $1944.07/oz as banking fears eased, equities rallied and safe haven flows moved out of the precious metal. It has been range trading during APAC trading today and is up 0.1% to $1959.00, between the intraday high and low, even though the USD index is down 0.3% and US yields are lower.

• Trend conditions for bullion remain in place and recent downward moves are seen as corrective. The break above $1959.70, the February 2 high, confirmed the resumption of the bull trend that started in late September 2022. Prices continue to hold above this level and are only down 2.2% from their March 23 high.
• The Fed’s Barr appears before the Senate banking panel later and there is also US trade and house price data released. The focus of the week though is Friday’s US core PCE price index, the Fed’s preferred measure. It is expected to remain stable at 4.7% y/y in February.