Gold is higher in Asia, the yellow metal.......>

GOLD: Gold is higher in Asia, the yellow metal last up $6.58 at $1,297.78. Gold

caught a bid after Yonhap reports that that North Korean countermeasures

(referrring to the pledge earlier by Kim Jong Un to respond to US sanctions)

could include a hydrogen bomb test in the Pacific. Despite the rise today gold

is still some 1.7% lower on the week having taking a pummelling in the wake of

the more hawkish FOMC meeting. 

- The rise in gold today is consistent with drops in USD; DXY is last at session

lows of 91.77 after hitting highs of the week at 92.697 on Wednesday. At these

levels DXY is still on track for a weekly gain.

- Later today the CFTC will release their weekly COT report, last week net longs

in gold were lifted for the ninth consecutive week, net long fund positions rose

to their highest levels Since September 2016.

- MNI technical analysis sees support at $1288.0 - Low Sept 21, resistance is

seen at $1304.6 - Low Sept 18 now resistance. Bears have so far failed to

capitalise on the close below $1294.4 and focus shifting to 55 & 100-DMAs

($1268.2-1283.0) with it regaining some lost ground in Asia.