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Heading For A Weekly Decline Despite Thursday’s Gain

GOLD
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Gold is little changed in the Asia-Pac session, after closing 0.7% higher at $2332.46 on Thursday.

  • Nevertheless, bullion is on track for a weekly close as persistent inflationary pressures force a continued paring of market easing expectations for the US Fed.
  • Overnight, US Treasuries reacted negatively to the Q1 GDP report, with 2- and 10-year yields 6-7bps higher.
  • US GDP rose by an annualised 1.6%, below the 2.5% consensus, partially explained by a shortfall in private consumption (2.5% against 3.0% expected). The core PCE deflator was stronger than expected, running at an annualised 3.7% (3.4% expected).
  • Weekly claims were also lower than expected.
  • According to MNI’s technicals team, the precious metal has recently pierced the 20-day EMA and a continuation lower would signal scope for an extension towards $2229.4, the 50-day EMA. Key resistance and the bull trigger have been defined at $2431.5, the recent Apr 12 high.
  • Elsewhere, copper is up by 1.3% at $454.6/lb, having hit a near 23-month high of $458.6 earlier in the session. A bullish theme in copper futures remains intact, with attention on $460.76 next, a Fibonacci projection. Key support is seen at $415.53, the 50-day EMA, according to MNI’s technicals team.
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Gold is little changed in the Asia-Pac session, after closing 0.7% higher at $2332.46 on Thursday.

  • Nevertheless, bullion is on track for a weekly close as persistent inflationary pressures force a continued paring of market easing expectations for the US Fed.
  • Overnight, US Treasuries reacted negatively to the Q1 GDP report, with 2- and 10-year yields 6-7bps higher.
  • US GDP rose by an annualised 1.6%, below the 2.5% consensus, partially explained by a shortfall in private consumption (2.5% against 3.0% expected). The core PCE deflator was stronger than expected, running at an annualised 3.7% (3.4% expected).
  • Weekly claims were also lower than expected.
  • According to MNI’s technicals team, the precious metal has recently pierced the 20-day EMA and a continuation lower would signal scope for an extension towards $2229.4, the 50-day EMA. Key resistance and the bull trigger have been defined at $2431.5, the recent Apr 12 high.
  • Elsewhere, copper is up by 1.3% at $454.6/lb, having hit a near 23-month high of $458.6 earlier in the session. A bullish theme in copper futures remains intact, with attention on $460.76 next, a Fibonacci projection. Key support is seen at $415.53, the 50-day EMA, according to MNI’s technicals team.