May 24, 2024 03:58 GMT
Down Sharply Again On Stronger US PMI Data
GOLD
Gold is little changed in the Asia-Pac session. This comes after bullion slid 2.1% to $2329.27 on Thursday, following the stronger-than-expected US PMI data, which saw markets push back expectations again for the first Fed rate cut later this year.
- US Treasury yields finished up 4-6bps across benchmarks. The 10-year rate was up 5bps at 4.48%.
- US STIR is back to pricing just 35bps of cuts this year, with November no longer fully priced.
- The yellow metal is now around $130 below the record high reached on Monday.
- Although gold has pulled back from its recent high, the medium-term trend structure remains bullish and short-term weakness is considered corrective, according to MNI’s technicals team.
- On the upside, attention remains on $2,452.5 next, a Fibonacci projection. The 50-day EMA, at $2297.2, represents a key support.
- Silver has also pulled back more than 7% from Monday’s high, with the precious metal down another 2.0% yesterday to $30/oz.
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