Rebounds Amid Broad USD Pull Back

Gold is recouping some losses from the overnight session, up around 0.25% so far. This puts us back near $1638 for the precious metal, after the overnight 0.70% fall.

• Directional correlation with USD moves remains strong, with the BBDXY off by close to 0.20% so far today. Range for the session has been just under $1631 to $1640.
• The rebound in UST yields has us back in the bottom half of the recent range though. A move sub $1630 could see recent lows below $1620 targeted.
• Interestingly, the World Gold Council stated central bank demand for gold was quite strong in Q3, hitting record purchases. Countries like Turkey and Qatar raised holdings, although there also significant purchases which were not reported at the country level (see this link).
• This is likely to reflect FX reserve diversification flows.
• Elsewhere though, gold ETF holdings continue to trend lower.