Slightly Lower In Asia

Gold sits ~$3/oz lower to print $1,922/oz at writing, operating just above session lows as an initial downtick in nominal U.S. Tsy yields has eased, giving way to lingering impetus from the relatively hawkish Mar FOMC minutes release on Wednesday.

• To elaborate, aforementioned FOMC minutes saw Fed officials propose potentially phased caps of $95bn per month in balance sheet reductions (largely in line with expectations from some quarters), while many attendees favoured “one or more” 50bp hikes going forward, flagging dependence on inflation data.
• Looking at Wednesday's price action, the precious metal closed little changed, struggling to make headway above the $1,930/oz price level as the USD (DXY) and U.S. real yields made fresh cycle highs.
• Elsewhere, OIS markets are pricing a cumulative ~215bp of Fed tightening for the rest of calendar ‘22, pointing to the potential for multiple 50bp rate hikes in the remaining six meetings for the year.
• From a technical perspective, bullion remains range bound. Key support is located around ~$1,908./oz (50-Day EMA), with further support at $1,890.2/oz (Mar 29 low and bear trigger). On the other hand, resistance is unchanged at $1,966.1/oz (Mar 24 high).