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Slightly Higher Today After A Spike Reversal From An All-Time High Yesterday

GOLD

Gold is 0.4% higher in the Asia-Pac session, after closing -2.1% at $2029.42 on Monday following a sharp pullback from an all-time high of $2135.4. The decline came alongside USD strength and higher US Treasury yields.

  • The jump to an all-time high was triggered by comments from Fed Chair Powell on Friday that traders interpreted as signalling a pivot to rate cuts was nearing. However, those bets were deemed overdone, with gold falling as US Treasury yields and the dollar rose.
  • US Treasuries finished with yields 2-10bps higher and the curve flatter. The markets now await a slew of US labour market data this week, including Friday’s Non-Farm Payrolls.
  • The pullback has already breached support at $2052.03 (Nov 29 high) to open $2001.5 (20-day EMA), according to MNI’s technicals team.

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