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GOLD: Geopolitical Tensions Extend The Rebound

GOLD
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Gold is 0.3% higher in today’s Asia-Pac session, after closing 0.8% higher at $2632.08 on Tuesday, amid the escalation in geopolitical tensions between Russia and the West. 

  • Heightened geopolitical tensions lent support to haven trades after Ukraine launched US made long range missiles into Russia. Despite President Putin's move to revise Russia's nuclear doctrine, however, US State Department Spokesperson Matthew Miller told reporters that the US has seen no reason to adjust its own nuclear posture.
  • Short end rates then pushed higher in the second half of the NY session, as projected rate cut pricing into early 2025 was tempered. Lower rates are typically positive for gold, which doesn’t pay interest.
  • KC Fed Schmid said "now is the time to dial back restrictiveness of policy". Schmid repeated "While now is the time to begin dialing back the restrictiveness of monetary policy, it remains to be seen how much further interest rates will decline or where they might eventually settle."
  • According to MNI’s technicals team, the technicals for gold remain bullish, with eyes on the 20-day EMA at $2,651.1. A clear break above this average would highlight a possible reversal and signal the end of the recent bearish corrective cycle. This would open $2,710.4, the Nov 11 high.
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Gold is 0.3% higher in today’s Asia-Pac session, after closing 0.8% higher at $2632.08 on Tuesday, amid the escalation in geopolitical tensions between Russia and the West. 

  • Heightened geopolitical tensions lent support to haven trades after Ukraine launched US made long range missiles into Russia. Despite President Putin's move to revise Russia's nuclear doctrine, however, US State Department Spokesperson Matthew Miller told reporters that the US has seen no reason to adjust its own nuclear posture.
  • Short end rates then pushed higher in the second half of the NY session, as projected rate cut pricing into early 2025 was tempered. Lower rates are typically positive for gold, which doesn’t pay interest.
  • KC Fed Schmid said "now is the time to dial back restrictiveness of policy". Schmid repeated "While now is the time to begin dialing back the restrictiveness of monetary policy, it remains to be seen how much further interest rates will decline or where they might eventually settle."
  • According to MNI’s technicals team, the technicals for gold remain bullish, with eyes on the 20-day EMA at $2,651.1. A clear break above this average would highlight a possible reversal and signal the end of the recent bearish corrective cycle. This would open $2,710.4, the Nov 11 high.