Fresh Cycle Lows In Asia; ETF Outflows Add To Gloom

Gold deals ~$3/oz weaker, printing ~$1,693/oz at typing. The precious metal sits a little above 15-month lows ($1,690.2/oz) recorded earlier in the session, with a limited downtick in the USD (DXY) and nominal U.S. Tsy yields likely helping to put a floor on the move lower for now.

• To recap, gold closed ~$15/oz weaker on Wednesday amidst a rise in U.S. real yields and the DXY, with the latter snapping a three-session streak of lower daily closes.
• Known ETF holdings of gold compiled by BBG points to approx. four weeks of outflows so far, taking the measure to levels last witnessed in early-Mar ‘22, while gold holdings in SPDR’s GLD ETF has fallen to six-month lows.
• From a technical perspective, gold appears to be approaching a zone that has acted as support since Apr ‘20 (approx. $1,670/oz to $1,690/oz) after a breakout from its COVID-induced trough.
• Looking to technical levels, gold’s earlier move lower has breached initial support at $1,690.6/oz (Aug 9 ‘21 low), exposing further support at $1,680.5/oz (1.764 proj of the Mar8-29-Apr18 price swing). On the other hand, resistance is situated at $1,745.4/oz (Jul 13 high).