Holding Yesterday's Gains

Gold is holding up better than most other commodities (e.g. copper and iron ore). The precious metal sits just above $1651 currently, slightly up on NY closing levels. We gained 0.34% yesterday, amid a broad pull back in the USD.

• Today the USD is slightly firmer against the likes of EUR, GBP & AUD, which has knocked gold off earlier highs, just above $1653.50, but we remain above overnight lows around $1647.
• In terms of topside levels, we did get above $1668 overnight, while moves into the $1670/80 region have generally capped gold since late last week.
• Outside of USD gyrations, the broader technical set up for gold still looks to be a negative one. We are still within striking distance of lows from last week around $1640.
• The steady picture in US real yields is likely lending some support though. The real US 10yr is not breaking higher, holding in a 1.55-1.65% range in recent weeks.