Rangebound In Pre-NFP Asia Session

Bullion has meandered through Asia-Pac dealing to trade little changed, just shy of $1,935/oz. This comes after spot tested $1,950/oz in NY hours, before pulling back from best levels, with the late shunt higher in U.S. real yields (based on our weighted U.S. real yield monitor) capping, then pressuring, bullion. The move higher in U.S. real yields has continued during Asia-Pac hours, accompanied by a modest uptick in the DXY, but bears have been wary of attempting to push gold lower, perhaps given the proximity to Friday’s U.S. NFP print.

• Note that Gold ETF holdings have surged since the onset of the Russia-Ukraine crisis, which has provided a leg of support on the flow side, as fund participation picks up. Note that ETF holdings of gold remain elevated in historical sense, and after the recent run higher sit a little over 5% shy of the all-time peak observed in late ’20.
• The aforementioned NFP print provides the notable risk event ahead of the weekend, while Russia-Ukraine matters will keep participants on headline watch.