Little Changed In Asia; $1,720/oz Eyed

Gold is ~$2/oz worse off to print ~$1,722/oz, operating a shade above Monday’s one-month lows at writing. The precious metal has maintained a tight ~$4/oz range in fairly limited Asia-Pac dealing, with no meaningful follow-through from a blip lower on marginal beats in official Chinese PMIs.

• To recap, gold closed ~$13/oz lower on Tuesday, pressured by above-estimate U.S. consumer confidence and JOLTs job openings, adding to worry re: Fed rate hikes amidst hawkish remarks from NY Fed Vice Chair Williams (voter) and Richmond Fed Pres Barkin (‘24 voter).
• Gold is on track for a fifth straight monthly decline, its longest such losing streak in four years with Fed hawkishness in focus, while the Dollar operates at historically elevated levels.
• Sep FOMC dated OIS now price in ~69bp of tightening at that meeting, with the measure returning to the highest levels observed in Aug since the decline in rate hike expectations from the below-expectations U.S. CPI print on Aug 10.
• From a technical perspective, gold remains in a short-term downtrend. Initial support is seen at $1,711.0/oz (76.4% retracement of the Jul21-Aug10 upleg), with further support situated at $1,700.0/oz (round number support). On the other hand, initial resistance is located at ~$1,765.5/oz (Aug 25 high).