Extends Wednesday’s Gain In Asia-Pac Dealings

Gold is +0.2% in the Asia-Pac session, after closing +0.4% at $1979.72 on Wednesday following headlines that Israeli PM Benjamin Netanyahu suggested that a ground invasion will be conducted and a report that the US was deploying missiles in the region.

• Wednesday’s move in bullion came despite gains in the USD and Treasury yields.
• The rise in the USD and yields were fueled by unexpectedly robust data on new home sales, which added to concerns that the ongoing strength of the US economy will keep a Fed rate hike on the agenda later in the year or early 2024. It has also added to expectations of a significant increase in Q3 GDP later today.
• Weakness in US Treasuries was also driven by expectations of next week's announcements regarding larger auction sizes, coupled with lacklustre demand metrics witnessed at the US$52bn 5-year note auction.
• Higher yields are typically negative for non-interest-bearing gold.
• According to MNI’s technicals team, yesterday’s gain maintains the yellow metal’s bullish outlook. It was also a step closer to resistance at $1997.2 (Oct 20 high).