Slightly Higher In Asia

Gold deals ~$3 firmer at writing to print ~$1,926/oz, operating around the lower end of Monday’s range. The precious metal has regained some poise in Asia as U.S. real yields and the Dollar have backed away from their earlier intra-day highs.

• To recap, bullion closed ~$35/oz lower on Monday, with the move lower facilitated by an uptick in U.S. real yields and the USD, in a session that saw nominal U.S. 10-Year Tsy yields hit levels not witnessed since May 2019.
• Turning to the war in Ukraine, both sides will begin two days of face-to-face ceasefire talks in Turkey later on Tuesday. FT source reports have pointed to a possible softening in Russian positions, dropping “denazification” and “demilitarization” demands while allowing Ukraine to seek admittance to the EU (but not NATO). Still, questions re: Ukrainian sovereignty surrounding Crimea and the separatist regions of Luhansk and Donetsk remain unresolved, with Ukrainian negotiators already stating that this is “the most critical point” from their perspective.
• On the technical front, the short-term outlook for gold is still bearish. Resistance is situated at $1,966.1/oz (Mar 24 high), while support is located at ~$1,901.9/oz (50-day EMA).