Glued To $1,800/oz Overnight

Gold has held to a narrow range in Asia-Pac hours, with spot little changed on the session, hovering just above $1,800/oz. To recap, after threatening a clean break below the $1,800/oz mark during Monday’s U.S. Tsy sell off, the move away from intraday highs in real yields (facilitated by widening breakevens as opposed to a meaningful reversal in nominal Tsy yields), led by the short end and the belly, allowed bullion to stabilise around the round number. A quick reminder that downside technical parameters for gold remain well-defined. Initial support is seen at the Dec 21 low ($1,784.9/oz), followed by the channel base drawn off the Aug 9 low. To the upside, the 61.8% retracement of the Nov 16 - Dec 15 downleg has been breached in recent sessions, with the Jan 3 high ($1,831.9/oz) now representing initial resistance. Above there, more meaningful resistance comes in at the Nov 22 high ($1,849.1/oz).