October 22, 2024 03:03 GMT
GOLD: Hovering Near Highs
GOLD
Gold is 0.3% higher in today’s Asia-Pac session, after closing steady on Monday, having risen to a fresh record high of $2,740.6 earlier in the session.
- There was no obvious headline for the pullback from the highs, as higher Treasury yields and the bid in the dollar started to reassert themselves.
- There was little reaction to MN Fed Kashkari town hall event, where he said rates will surge if the US deficit "goes to the moon". Meanwhile, Kansas City Federal Reserve President Jeff Schmid said Monday aftermarket that he prefers the central bank scale back rate cuts to more modest adjustments. Hence, there is time to observe the economy’s reaction and to assess the neutral rate, which is likely "well above" what it was in the decade before the pandemic.
- Lower rates are typically positive for gold, which doesn’t pay interest.
- According to MNI’s technicals team, technicals remain bullish, with sights on $2,767.1 next, the 3.236 projection of the Jul 25 - Aug 2 - Aug 5 price swing.
165 words