Little Changed In Asia

Gold sits ~$1/oz weaker to print ~$1,765/oz at typing, off Friday’s three-week highs ($1,768.0/oz) as nominal U.S. Tsy yields have edged a little higher.

• Fed-related matters remain front and centre for the precious metal, with gold operating within a tight ~$6/oz range in Asia despite a spread of risk-negative headlines over the weekend (from weak Chinese official PMIs to U.S. House Speaker Pelosi’s potential visit to Taiwan). Elsewhere, there was little by way of a meaningful reaction in the yellow metal observed to the slight miss in Caixin m’fing PMI earlier in the session as well.
• Sep FOMC dated OIS now price in ~59bp of tightening for that meeting in the wake of previously-flagged comments by Minneapolis Fed Pres Kashkari, edging away from post Jul FOMC lows of ~54bp.
• To recap Friday’s price action, gold closed ~$10/oz firmer, rising from worst levels after slightly above-expectation prints for ECI and some measures of PCE, helping bullion cap a three-day streak of gains amidst a simultaneous downtick in U.S. real yields and the USD (DXY).
• From a technical perspective, gold’s recent bounce is still seen as corrective, with focus now on initial resistance at ~$1,786.1/oz (50-Day EMA), a break of which would bring $1, 814.5/oz (trendline resistance) into view. On the other hand, support is seen at ~$1,743.0/oz (20-Day EMA).