Fresh Two-Week Lows In Asia; Test Of Key Support Eyed

Gold deals ~$3/oz weaker to print ~$1,756/oz, a little above two-week lows made earlier in the session amidst an uptick in the USD, with the DXY trading just shy of fresh one-month highs at writing.

• The limited move lower in gold comes after headlines re: the attendance of Russian Pres Putin and Chinese Pres Xi at the G20 summit in November, with the event possibly contributing to the aforementioned bid in the USD, while nominal U.S. Tsy yields have edged a little higher as well (details fleshed out in earlier bullets).
• Gold is on track for its first weekly decline in five, with recent Dollar strength and debate re: the size of incoming Fed rate hikes remaining in focus for the space.
• Elsewhere, Chinese imports of gold from major refiner Switzerland has hit a five-year high for the month of July, with the rise in demand attributed to the relaxation of domestic COVID measures.
• From a technical perspective, gold’s move lower has taken it to the threshold of key short-term support at $1,754.4/oz (Aug 3 low), with a clear break of that level potentially exposing further support at $1,711.7/oz (Jul 27 low).