Consolidates After Its Record-Breaking Run

Gold is 0.2% weaker in the Asia-Pac session, after closing 0.2% higher at $2182.75 on Monday.

• Monday’s gain expanded bullion winning streak to nine consecutive sessions and came despite US Treasury yields pushing higher with a flattening bias. US yields finished the NY session 1-6bps higher.
• There were no headline or data-driven factors but $26bn of corporate and $56bn of 3-year Treasury issuance weighed.
• The market’s focus now shifts to CPI data later today, and PPI and Retail Sales on Thursday. There will be heightened sensitivity to any deviation from the consensus which sits at 0.3% m/m and 3.7% y/y for CPI ex food and energy.
• According to MNI’s technicals team, the yellow metal last week traded above resistance at $2135.4, the Dec 4 high, signalling scope for a climb towards $2206.6 next, a Fibonacci projection. Short-term conditions are overbought; however this does not appear to be a concern for bulls - for now.