Dip In Early Asia Unwound

Spot gold saw a sharp move lower in early Asia-Pac trade, with little in the way of headline flow behind the price action. This left most to point to thinner liquidity conditions around Monday's U.S. holiday as a major component of the move, exacerbating downward pressure on a technical break below the recent lows. This train of thought was given further credence by the subsequent recovery, with spot last dealing little changed, just shy of $1,830/oz, after printing as low as $1,804.7/oz early on. A move through today's early low would open the way to round number support at $1,800/oz, with any sustained breach there set to shift bearish focus to the Dec 1 low, located at $1,775.9/oz. To the upside, bulls need to reclaim the 50-EMA before looking higher.