Nudging Higher As Dollar Eases

Gold sits $3/oz firmer to print $1,754/oz at writing, a little below best levels after a brief show through Wednesday’s peak, with the limited move higher aided by a downtick in the USD (DXY) and nominal U.S. Tsy yields.

• To recap, gold closed ~$3/oz firmer on Wednesday for a second consecutive higher daily close, aided by a continued pullback in the DXY from Tuesday’s highs above the 109.00 mark.
• Elsewhere, gold drew limited support from a fresh 19-point policy plan from China’s State Council on Wednesday focused on addressing specific challenges to economic growth, with bullion demand in the country continuing to rise from its ‘22, COVID-induced lows.
• Looking ahead, gold currently sits a little towards the lower end of a ~$60 trading range established in August in the run-up to the Fed’s three-day Jackson Hole Symposium, with focus turning to Fed Chair Powell’s keynote speech on Friday.
• From a technical perspective, gold remains weak following its recent failure to break trendline resistance. Initial support is seen at $1,727.8/oz (Aug 22 low), while initial resistance stands at ~$1,763.39/oz (20-Day EMA).