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Gold at an Alltime High on USD Dive


The USD has started the week poorly in what's likely to be a frenetic and
busy week. Broad-based USD weakness has fed into higher precious metals
prices, with spot gold piercing a new alltime high at $1944.71 to add to
the already technically overbought outlook. MNI Tech now sees next
resistance at Fibonacci projection levels of $1967.00.

The tit-for-tat escalation of US/China consulate closures remains
the key driver for risk, boosting haven currencies and working against
the USD. This has kept haven FX bid, resulting in JPY outperforming
(although this hasn't extended to CHF at the midpoint of the European morning.

Escalating COVID-case counts in Spain have kept a lid on European
equities, promping the IBEX-35 to sink over 1.5%.

It's a frenetic week for earnings, with close to 50% of the S&P500
by market cap due to report. The busiest session is Thursday, with
Apple, Amazon and Alphabet all due. Prelim US durable goods for June
are the data highlight.

MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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