Holding Lower On Dollar Strength; $1,700/oz Breached

Gold is little changed, sitting at ~$1,697/oz at writing, operating a short distance away from six-week lows (~$1,688.9/oz) made on Thursday.

• To recap, gold closed ~$14 lower on Thursday for a third consecutive lower daily close as the USD (DXY) hit fresh cycle highs, with the precious metal on track for a third straight weekly decline amidst elevated worry re: Fed/ECB hawkishness.
• Total known ETF holdings of gold are headed for a 12th straight weekly decline, pointing to lingering weakness in investor interest.
• Atlanta Fed Pres Bostic (‘24 voter) stated late on Thursday that the Fed was a long way away from the Fed’s 2% target, while nodding to a soft landing as being a “very hard thing to do” that has “happened maybe once or twice” in the U.S.
• Sep FOMC dated OIS now price in ~73bp of tightening at that meeting, placing >90% odds of a 75bp hike in September.
• From a technical perspective, gold has broken initial support at $1,700.0/oz (round number support), exposing further resistance seen at $1,681.0/oz (Jul 21 low and bear trigger). On the other hand, initial resistance is located at ~$1,727.8/oz (Aug 22 low).