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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GOLD
Gold continues to respect recent ranges, as it has done for much of the past week. We currently sit in the middle of the recent range at $1670, down slightly from NY closing levels. The precious metal has spent little time outside of $1660/$1680 this past week.
- The metal has found support on a number of occasions around the $1655 in recent weeks, so this level is offering some support on the downside.
- Still, a test and potential break remains a medium term risk. The chart below overlays spot gold against the US 10yr real yield (which is inverted on the chart). Higher real yields should weigh further on gold, all else equal.
- The metal outperformed the continued run higher in core yields overnight, although did find some relief from firmer yen levels.
- Also note the continued fall in gold ETF holdings, which paints a negative flow picture. Such holdings are still above lows from the beginning of the year.
Fig 1: Gold & US Real Yield (10yr)
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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