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Slightly Higher After A New Record High On Wednesday

GOLD

Gold is slightly higher in the Asia-Pac session, after closing 0.9% higher at $2148.18 on Wednesday. Earlier in yesterday's session bullion achieved a new record high of $2152.25.

  • The precious metal was buoyed by continued Houthi attacks plus the sizeable depreciation of the USD after there were no hawkish surprises in ADP employment, the JOLTS report or Fed Chair Powell’s testimony.
  • Fed Chair Powell reiterated in front of Congress the Fed’s view of cutting interest rates "at some point this year" but not until it becomes more confident that inflation will keep falling.
  • US Treasuries finished with yields flat to 5bps lower.
  • The next resistance is $2177.6 (Fibonacci projection of Oct 6 – 27 – Nov 13 price swing), according to MNI's technicals team.
  • (Bloomberg) Citigroup Inc. raised its gold forecast for the next three months to $2,200 an ounce, and upgraded the projection to $2,300 for the next six to 12 months. It cited recession risks in the second quarter, which can favour gold, “especially given the recent equity and credit market rallies.”
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Gold is slightly higher in the Asia-Pac session, after closing 0.9% higher at $2148.18 on Wednesday. Earlier in yesterday's session bullion achieved a new record high of $2152.25.

  • The precious metal was buoyed by continued Houthi attacks plus the sizeable depreciation of the USD after there were no hawkish surprises in ADP employment, the JOLTS report or Fed Chair Powell’s testimony.
  • Fed Chair Powell reiterated in front of Congress the Fed’s view of cutting interest rates "at some point this year" but not until it becomes more confident that inflation will keep falling.
  • US Treasuries finished with yields flat to 5bps lower.
  • The next resistance is $2177.6 (Fibonacci projection of Oct 6 – 27 – Nov 13 price swing), according to MNI's technicals team.
  • (Bloomberg) Citigroup Inc. raised its gold forecast for the next three months to $2,200 an ounce, and upgraded the projection to $2,300 for the next six to 12 months. It cited recession risks in the second quarter, which can favour gold, “especially given the recent equity and credit market rallies.”