Bullion Supported By Lower USD And US Yields, Watch Wednesday’s US Data

Gold prices have held above $2000/oz during APAC trading and are up 0.2% following a 1.8% increase on Tuesday. It is currently trading around $2023.54. It reached an intraday high of $2025.37, which exceeded Tuesday’s high of $2025.04. Bullion has been supported by a lower dollar and US yields following weak US data. There is an increasing belief that Fed rates are close to peaking. The USD index has been flat on Wednesday.

• Gold broke through the bull trigger of $2009.70, the March 20 high, on Tuesday. It also rose past $2024.85, opening $2034 as a level to watch, but is now back below.
• There are no Fed officials scheduled to speak later today. But there is some important data with US ADP March employment forecast to rise 210k, and the trade deficit for February expected to widen slightly to $68.8bn. March ISM services is projected to ease to 54.4 from 55.1 and the prices paid component is likely to be watched closely, while the S&P Global services and composite PMIs are forecast to be stable at February levels.