Little Changed In Asia; G7 Matters Eyed

Gold sits $1/oz firmer to print $1,824/oz at typing, operating a little above Monday’s worst levels in fairly limited Asia-Pac dealing.

• To recap, the precious metal reversed an early bid on Monday to close ~$4/oz weaker, with the move lower facilitated by an uptick in U.S. real yields. Initial support stemming from news over the weekend of an upcoming G7 ban on Russian gold imports has receded entirely, with gold trading below last Friday’s close at typing.
• The ongoing G7 meeting should nonetheless provide a potential source of headline risk for bullion, with leaders expected to formally announce the gold import ban later on Tuesday, while negotiations over a plan to impose price caps on Russian oil and gas continue to play out.
• Up next, San Francisco Fed Pres Daly (‘24 voter) participates in an interview with LinkedIn’s Chief Economist later on Tuesday (1730 BST), with U.S. Conf. Board Consumer Confidence and flash Wholesale Inventories headlining the U.S. data docket.
• Looking to technical levels, well-documented 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.