Extends Monday's Gain In Asia-Pac Trade

In the Asia-Pac session, gold has gained ground, reaching 1929.21 (+0.3%). This follows a slight increase (+0.1%) on Monday, as investors carefully evaluated escalating geopolitical uncertainty and signals pointing towards a potential recession.

• The price of bullion experienced a rise of up to 0.6% on Monday, primarily driven by the extraordinary mutiny led by Russian mercenary leader Yevgeny Prigozhin. However, the upside potential for this safe-haven asset was limited as Prigozhin abruptly halted his dramatic advance towards Moscow over the weekend.
• The price of the precious metal is primarily susceptible to the movements of real interest rates and the value of the dollar. Past trends indicate that rallies driven by geopolitical risks are typically short-lived in nature.
• According to MNI’s technicals team, the bear cycle in gold remains intact. Trendline support has been breached - the line is drawn from the Nov 3 2022 low and the break reinforces a bearish condition. Furthermore, the move lower confirms a resumption of the downtrend. The focus is on $1903.5, 61.8% of the Feb 28 - May 4 bull cycle. Key resistance is $1985.3, the May 24 high. Initial resistance is at $1948.8, the 20-day EMA.