Slightly Firmer Ahead Of US Inflation Data

Gold is slightly stronger in the Asia-Pac session, after closing 0.2% higher on Wednesday.

• Bullion recovered off a low of $2024.59 to finish at $2034.55 as the USD gave up earlier gains and US Treasuries rallied.
• US Treasuries finished the NY session with modest gains. US Treasury curve bull-steepened ahead of key PCE Deflator data later today, with yields 2-5bps lower. US Treasuries were supported by a flurry of balanced Fed speak.
• While Atlanta Fed President Bostic remains "comfortable" with a patient Fed strategy to address inflation, he still expects the first rate cut this summer.
• More cautiously, NY Fed President Williams reiterated the Fed has a "ways to go to sustained 2% inflation", while Boston Fed President Collins wants greater confidence in disinflation before softening policy.
• According to MNI’s technicals team, recent price activity has defined key resistance at $2065.5, the Feb 1 high, and key support at $1984.3, the Feb 14 low - both levels represent important short-term directional triggers.