Friday’s Gains Extended In Today’s Asia-Pac Session

Gold is 0.4% higher in the Asia-Pac session, after closing 0.5% higher at $2013.59 on Friday.

• Trading volumes have likely received a boost today as markets in China reopen following a week-long break.
• Bullion rose on Friday despite US Treasury yields spiking to their highest levels for the year following the release of higher-than-anticipated PPI data.
• The 2-year yield surged to 4.72% following the data release before concluding 7bps points higher at 4.64%. Meanwhile, the 10-year yield experienced a 5bps increase to 4.28% after reaching an intraday peak of 4.33%.
• Cash US Treasuries are closed today for the Presidents Day holiday.
• The market’s focus is now likely tuned to the release of the Federal Reserve minutes of its recent meeting midweek.
• While gold has edged back above its breakout level, a bearish theme does remain intact overall, according to MNI’s technicals team. The yellow metal needs to clear resistance at $2065.5, the Feb 1 high, to reinstate a bullish theme.