Falls Below the 200-Day Moving Average

Gold is little changed in the Asia-Pac session, after closing 0.5% lower at 1891.81 on Wednesday. The close was below the June 29 low and the bear trigger identified by MNI’s technicals team. The precious metal also breached its 200-day moving average, a key support level. The next level on the downside is $1885.8, the March 15 low.

• Bullion was pressured by more hawkish than expected FOMC minutes for the July meeting. The minutes revealed that a majority of participants maintain a perspective of substantial upward risks to inflation, potentially necessitating additional measures to tighten monetary policy. Furthermore, the minutes highlighted that forthcoming data in the following months would offer insights into the ongoing trajectory of the disinflation process.
• US tsys finished 1-4bps cheaper across the major benchmarks on Wednesday, with the belly underperforming. Higher bond yields are typically negative for the precious metal, which doesn’t earn interest income.
• The continued rise in the USD also added downward pressure on the yellow metal.