Second Consecutive Decline On Friday Ahead Of Major Central Bank Meetings This Week

Gold is slightly weaker (-0.1%) in the Asia-Pac session as the world's major central banks gear up for a crucial week. The Fed is scheduled to meet on Wednesday, followed by the ECB on Thursday, and the BoJ on Friday. Investors are confident that both the Fed and ECB will implement further tightening measures, with 24bp of hikes already factored in for each of them. With respect to the BoJ, Bloomberg and Reuters have cited sources in reporting that the board were leaning toward no change in approach in the coming policy meeting, countering recent speculation that a policy switch would be imminent.

• Gold closed lower (-0.4%) at $1961.9 on Friday for its second consecutive day after another step higher in the USD index.
• However, bullion didn't trouble support at $1934.4 (20-day EMA) whilst resistance remains at the early Thursday high of $1987.5.
• Money managers are turning more bullish on gold, having increased net-long positions to a 10-week high. (See link)