Holding Just Shy Of Record High

Gold is 0.2% higher in the Asia-Pac session, just shy of its fresh all-time high of $2353.95, after closing 0.4% higher at $2339.03 on Monday.

• Once again, the push higher in bullion came despite US treasury yields pushing higher on the day. The US Treasury 10-year yield rose to the highest since November and came within a striking distance of 4.5%, before finishing 2bps higher at 4.42%. The US 2-year note finished 4bps higher at 4.79%.
• Gold is up more 17% since mid-February, a move that has left some onlookers puzzled because of the lack of any obvious trigger — especially given traders’ conviction on three quarter-point rate cuts is fast fading, with markets now favouring less than three easing.
• While some analysts have continued to raise their year-end price forecasts, TD Securities note the risk of a reversal given the excess of safe haven demand in the absence of a further escalation in the middle east.
• According to MNI’s technicals team, the trend condition in gold remains bullish, with sights on $2376.5 next, a Fibonacci projection. Initial firm support is at $2210.1, the 20-day EMA.