April 18, 2024 03:59 GMT
Higher Today After Yesterday’s Drop
GOLD
Gold is 0.6% higher in the Asia-Pacific session, after closing 0.9% lower at $2361.02 on Wednesday. This leaves the yellow metal 2.4% off its recent record high.
- Despite the prevailing risk-off sentiment in the markets yesterday, characterised by lower US Treasury yields, wider credit spreads, weaker US equities, and softer oil prices, bullion made a notable downward move.
- Technical buying, bargain hunting and an especially well-received 20-year auction also helped US Treasuries move away from YTD yield highs.
- Gold's decline yesterday likely stemmed from Federal Reserve Chair Jerome Powell's recent remarks, which indicated a potential postponement of the eagerly awaited policy shift following a string of unexpectedly high inflation readings.
- Newsflow was minimal yesterday. Today’s US calendar will see Weekly Claims, Existing Home Sales and Fed Speak.
- According to MNI’s technicals team, sights remain on $2452.5 next, a Fibonacci projection. Initial firm support is at $2286.3, the 20-day EMA.
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