Slightly Higher In Asia-Pac After Sliding On Monday Despite Lower Yields & USD

Gold is 0.2% higher in the Asia-Pac session, after closing -0.4% at $1972.85 on Monday.

• There was no discernible boost for bullion from a slide in the USD index in the second half of the session and the large intraday rally in US Treasuries. The US 10-year yield traded in a 19bp range, breaching the 5% mark (5.019%) for the first time since 2007, before finishing 6bps lower at 4.85%. The 2-year finished 3bps richer at 5.05%.
• Bloomberg reported Bill Gross had covered short positions, while Pershing Square fund manager/CEO Bill Ackman tweeted he had covered shorts in US tsys in light of "too much risk in the world to remain short." Additionally, Reuters reported asset manager Vanguard is bullish on longer-dated US tsys after this year’s brutal selloff, betting that the Federal Reserve is at the end of its rate hiking cycle and that the economy will slow next year.
• The decline in yields provided support for equities, while oil declined with gold and the USD.
• Geopolitics remained a focus, but the delay to a much-feared Israel ground assault on Gaza provided some stability to the markets as diplomats tried to prevent a wider regional conflict.
• According to MNI’s technicals team, Friday’s high of $1997.2 marks resistance whilst it remains off support at $1945.3 (Oct 19 low).