Holding Near Highs

Gold is slightly lower in the Asia-Pac session, after closing 0.3% higher at $2171.83 on Monday.

• US Treasuries saw losses of 4-5bps across benchmarks to start a holiday-shortened week. US bonds were heavy amid anxiety over the FOMC's policy path with risk the Fed does not cut rates the 3 times projected by the dots this year.
• Comments from Fed Bostic supported that chance too, as he revised his outlook for only 1 easing, versus 2 previously. While Fed Cook said officials must cautiously balance the risk of easing monetary policy too much or too soon, allowing inflation to linger above target, and taking too long to ease, which could harm the economy needlessly and deprive people of economic opportunities.
• The market’s focus is on Friday’s release of US PCE deflators. That said, the scope for any major surprises should be limited in Good Friday trading, with the CPI and PPI figures feeding into that release.
• According to MNI’s technicals team, the trend condition in gold remains bullish and sights are on $2230.1, a Fibonacci projection. Key short-term support has been defined at $2146.2, the Mar 18 low.