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Middle East Tensions Support But Comments From ECB Holzmann & A Strong USD Weigh

GOLD

Gold is 0.4% lower in the Asia-Pac session, after closing 0.4% higher at $2058.17 on Monday. Volumes were light with US markets closed for observance of the Martin Luther King Day public holiday.

  • Monday’s move came despite a stronger USD and weaker US Treasury futures, with the yellow metal buoyed by increased geopolitical risks following Houthi strikes.
  • However, comments from the ECB’s Holzmann on Monday that cuts this year were not assured given lingering inflation and geopolitical risks likely kept gains in bullion to a minimum.
  • According to MNI’s technicals team, resistance for the precious metal is seen at $2064.0 (Jan 5 high).

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