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Consolidates After Posting Fresh YTD Highs On Friday

GOLD

After surging to fresh YTD highs on Friday, gold has consolidated in the first part of trade this week. After closing last week at $1989.25, we sit comfortably lower now, last around $1974. This is around 0.75% off Friday highs, but note that gold rose last week just under 6.5%. We have seen some consolidation in terms of broader USD trends, but today's moves may represent a consolidation post strong gains last week in terms of the precious metal.

  • Dips today have been supported sub the $1970 level. Below that is early Feb highs just under $1960, which could be a support point on the downside. On the topside is highs from Friday and then round figure resistance at $2000.
  • Gold ETF holdings fell on the final day of trading last week, but the broader macro backdrop looks supportive of holdings given risk aversion remains elevated today.

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