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Light Bid On G7 Import Ban; Remains Unchanged For June

GOLD

Gold sits ~$8/oz better off to print ~$1,835/oz at typing, operating just below session highs after paring opening gains.

  • The move higher was facilitated by the G7 announcing intent to unveil an import ban on newly mined/refined Russian gold later this Tuesday, formally cutting supplies from the world’s second-largest gold producer. ~90% of all Russian gold went to G7 countries in ‘20.
  • Moves in bullion were likely muted as Russian gold exports have been facing difficulties since Q2 ‘22 after the initial round of sanctions from the West, with trade data pointing to Russian exports of gold to the UK hitting 73kg in April (particularly after moves such as the London Bullion Market Association’s suspension of deliveries from Russian refineries in March).
  • To recap Friday’s price action, gold closed ~$4/oz higher on Friday, with a downtick in U.S. real yields and the USD (DXY) providing support for the space. Bullion ultimately sits virtually unchanged in June however, with few drivers observed apart from ongoing debate re: a Fed-led economic slowdown.
  • Bullion also sits comfortably off its mid-June lows ($1,805.2/oz on Jun 14), with U.S. real yields broadly backing away from cycle highs made then, while the USD (DXY) notched its first weekly loss in four weeks on Friday.
  • From a technical perspective, previously outlined support and resistance levels remain intact at $1,787.0/oz (May 16 low) and $1,889.1/oz (trendline resistance from Mar 8 high) respectively.
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Gold sits ~$8/oz better off to print ~$1,835/oz at typing, operating just below session highs after paring opening gains.

  • The move higher was facilitated by the G7 announcing intent to unveil an import ban on newly mined/refined Russian gold later this Tuesday, formally cutting supplies from the world’s second-largest gold producer. ~90% of all Russian gold went to G7 countries in ‘20.
  • Moves in bullion were likely muted as Russian gold exports have been facing difficulties since Q2 ‘22 after the initial round of sanctions from the West, with trade data pointing to Russian exports of gold to the UK hitting 73kg in April (particularly after moves such as the London Bullion Market Association’s suspension of deliveries from Russian refineries in March).
  • To recap Friday’s price action, gold closed ~$4/oz higher on Friday, with a downtick in U.S. real yields and the USD (DXY) providing support for the space. Bullion ultimately sits virtually unchanged in June however, with few drivers observed apart from ongoing debate re: a Fed-led economic slowdown.
  • Bullion also sits comfortably off its mid-June lows ($1,805.2/oz on Jun 14), with U.S. real yields broadly backing away from cycle highs made then, while the USD (DXY) notched its first weekly loss in four weeks on Friday.
  • From a technical perspective, previously outlined support and resistance levels remain intact at $1,787.0/oz (May 16 low) and $1,889.1/oz (trendline resistance from Mar 8 high) respectively.