Slightly Stronger After Wednesday’s Drop On The Back Of A Stronger USD & Higher Yields

Gold is +0.4% in the Asia-Pac session, after closing 0.4% lower at $1990.17 ahead of the US Thanksgiving holiday.

• The stronger greenback weighed on the precious metal at the margin, with spot gold consolidating back below the 2,000/oz mark for now.
• A bear-flattening of the US tsy curve, with yields flat to 3bps higher, also pressured bullion. US jobless claims and UofM inflation expectations data were not US Treasuries-friendly, sending yields higher led by the 5s.
• According to MNI’s technicals teams, the trend condition in gold remains bullish and this week’s gains reinforce this condition. The move higher signals scope for a test of key short-term resistance at $2009.4, the Nov 7 high. Clearance of this hurdle would confirm a resumption of the uptrend and pave the way for a climb towards $2022.2, the May 15 high.