Meandering Through Asia Dealing

Gold has meandered through Asia-Pac dealing, with the relatively widespread observance of the Vesak Day holiday limiting liquidity during regional trading hours, leaving spot little changed, just above $1,810/oz. This comes after general risk-positive price action pressured gold on Friday.

• Bullion has shown little reaction to the respective bouts of risk-positive and risk-negative price action witnessed thus far.
• Note that our weighted U.S real yield monitor operates a little shy of its recent cycle highs.
• Our technical analyst has noted that gold remains vulnerable - Wednesday's move lower confirmed a resumption of the current downtrend. Bears now target a sustained break of psychological support (1,800/oz), after a brief and limited show below on Friday. This would allow them to focus on the Jan 28 low ($1,780.4/oz).