Lower In Asia

Gold deals $5 weaker at writing to print ~$1,938/oz, backing away from one-week highs made earlier in the session, with an uptick in the Dollar (DXY) and U.S. Tsy yields applying some modest pressure.

• To recap Wednesday’s price action, the precious metal closed ~$20/oz firmer, with the move higher facilitated by a broad downtick in U.S. real yields.
• Gold’s geopolitical risk premium remains elevated ahead of the U.S.-NATO summit later on Thursday. Even as there has been little discernible progress in ongoing Russia-Ukraine ceasefire negotiations, tensions between Russia and the west have continued to rise. The spectre of fresh U.S. & European sanctions on Russia lingers.
• Looking to technical levels, bullion isn’t far away from initial resistance at $1,954.7/oz (Mar 15 high). A successful break of that level will expose further resistance at $2,009.2 (Mar 10 high), while support is located some distance away at $1,895.3 (Mar 15 low and 50-Day EMA).