Gold is mostly following broader USD direction. We currently sit close to $1664, not far from recent highs. A break above $1665 could pave the way for a move towards $1680, highs from last week. On the downside, yesterday's lows just under $1642 should offer some support, beyond that is Wednesday's lows around $1615.
- If the precious metal holds around current levels, it would put weekly gains at +1.2%, the best performance since mid August.
- Gold is looking a little elevated relative to US real yields, with the 10yr rebounding overnight to 157bps, versus 139bps on Wednesday.
- This may be a constraint in terms of how far the current rebound can extend, but it isn’t driving sentiment today.