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October Highs Breached In Asia

GOLD

The combination of another downtick for the broader USD and U.S. Tsy yields moving away from session highs has provided support for bullion.

  • A break of the October high and related market activity added a flow-based dimension to the overnight move, which was no doubt exacerbated by typically thinner liquidity during Asia-Pac hours.
  • Spot topped out at $2,018.2/oz as the move accelerated on the technical break, before backing off to trade at $2,010.5/oz at typing, up the best part of $10/oz on the day.
  • Bulls now eye the May 15 high ($2,022.2/oz). Beyond there, the May 10 high ($2,048.2/oz) presents the next point of note.
  • Known gold holdings of ETFs remains off recent cycle lows, but the move higher in the metric hasn’t been particularly forceful, pointing to limited participation from ETFs during the latest gold rally.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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