November 20, 2023 09:39 GMT
Rates & Hope Re: Israel-Hamas Hostage Situation Offset Weaker USD, Techs Remains Bullish
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Spot gold is effectively unchanged, just below $1,980/oz, consolidating last week’s rally.
- Note that early Monday trade sees the impact of a lower USD and slightly higher U.S. Tsy yields largely offsetting when it comes to gold.
- U.S.-derived hope re: the Israeli-Hamas prisoner situation will also be capping any support derived from the same USD weakness.
- Technically, the trend condition in gold remains bullish and recent gains reinforce this theme. Furthermore, MA studies are in a bull-mode set-up, highlighting a rising trend cycle. A stronger resumption of gains would open $2,022.20/oz, May 15 high. The bull trigger is at $2,009.4/oz, the Oct 27 high, providing protection.
- On the flow side, known ETF holdings of gold actually fell last week, despite the rally in bullion.