Prices Holding Just Above $2000 Following Friday’s Slide

Gold prices are flat during the APAC session today after falling 1.8% on Friday and reaching a low of $1992.44/oz following stronger US consumer confidence and a jump in inflation expectations. The greenback fell and yields rose in response to the data. Currently bullion is trading around $2004.44, up from the intraday low of $1995.52 but well off last week’s high of $2048.74. The USD index is up 0.1%.

• Friday’s move down unwound the week’s gains but support is still at $1981.70, the April 10 low.
• Citigroup increased its average 2023 gold price forecast to $2050/oz, an upward revision of 7.9%, on the back of expectations that the Fed is close to its terminal rate.
• According to Bloomberg, bullish hedge fund positions were reduced in the week to April 11 and purchases of gold-backed ETFs stopped after reaching the highest since late January.
• There is little data scheduled for later but there are a number of central bank speakers outside of the US. ECB President Lagarde will speak, as will Buba President Nagel and BoE’s Cunliffe.