Lower US Treasury Yields Provide Support

Gold is 0.5% higher in the Asia-Pac session, after closing 1.2% higher at $2355.32 on Wednesday. The yellow metal has been in a $2,320-2,360 for most of the last nine sessions.

• Bullion was supported by US Treasuries, which extended their recent rally to a fifth day.
• US Treasuries cheered further signs of a slowing job market and cooling price pressures, with the BoC's policy easing and plans for another in July bolstering hopes for global rate cuts.
• ADP jobs gain was lower than expected at +152k vs. +175k est (192k prior down-revised to +188k).
• Fast two-way flow reported after mixed ISM Services data: Index higher than exp (53.8 vs. 51.0 est) but lower Prices Paid (58.1 vs. 59.0 est).
• The focus now turns to Thursday's Weekly Claims and Unit Labor Costs as well as the ECB Policy Decision, followed by Friday's Non-Farm Payrolls data.
• According to MNI’s technicals team,a bear cycle in gold remains in play for now, although the medium-term trend structure is bullish, and the recent move down appears to be a correction that is allowing an overbought condition to unwind.
• A resumption of gains would open $2,452.5 next, a Fibonacci projection. The 50-day EMA, at $2,312.0, represents a key support.