Holding Close To Recent Highs

Gold has largely tracked sideways through the first part of Wednesday trade. We last sat near $2040.5, little changed versus end Tuesday levels. We did see a brief dip to sub $2037, but this was supported. Early gains above $2041 also couldn't be sustained.

• A fairly contained session for gold matches with other macro variables. The BBDXY USD index is steady near 1223, while US Tsy Futures have shown a modestly firmer bias. US equity futures sit a touch higher.
• The broader technical backdrop for gold still looks positive. Recent resistance has been evident on moves into the $2045-2050 range. A break above this level could see $2054 targeted, which is a 50% retracement of the earlier Dec pull back.