Gold is lower for the session, but only by a modest -0.20%. We currently sit around $1625.50, which is still above recent cyclical lows closer to $1621 (from earlier in the week). This comes despite fresh highs in USD FX indices, with the dollar's relentless rise underpinned by the White House pushing back on the need for any fresh Plaza-type FX accord agreement.
- Support for gold appears to have come from the risk aversion channel. Equity markets are off strongly in Asia Pac, particularly in the tech space, while US futures are down as well, albeit away from worst levels.
- Consistent with this theme, the precious metal is also outperforming other commodities so far today (copper, oil and iron ore).
- US yields are also higher, but the 10yr couldn't an earlier break through 4.00%. The real US 10yr yield climbed further overnight to 1.64%. This may cap any upswings in gold, with overnight highs above $1640 a potential resistance point.