Heavy Again In Asia-Pac After A Very Heavy Monday

Gold is 0.4% weaker in the Asia-Pac session, after starting the week on a bearish note (-1.1% at 1828.03). This came after bullion saw its biggest weekly decline in eight months last week, with the higher-for-longer interest rate environment taking its toll on the precious metal.

• US Treasury yields climbed on Monday, pressuring the yellow metal after a US government shutdown was averted over the weekend and markets shifted focus back to the future path for interest rates. US Treasuries finished the NY session 6-11bp cheaper, with the belly underperforming. The 10-year yield climbed to test the 4.70% cycle high before finishing at 4.68%.
• From a technical standpoint, the recent move lower has resulted in a break of support at $1901.10. According to MNI’s technicals team, this was followed by a breach of further support at $1884.9, the Aug 21 low. This has confirmed a resumption of the downtrend that started off the early May high. On the upside, initial firm resistance is at $1905.5, the 20-day EMA.