Slightly Stronger In Asia-Pac, Showing Relative Resilience

In early Asia-Pacific trading, gold has firmed $3.29 (+0.16%) to 2014.02, continuing the relative resilience it displayed in trading ahead of the weekend. Gold declined a modest 0.2% to 2010.77 despite an increase in US tsy yields and a second day of dollar strength.

• MNI's technical team reports that gold is still on an uptrend, marked by a series of higher highs and higher lows. Moving average studies are also indicating a bullish setup. Investors are closely monitoring the March 8 high of $2070.4, which is the immediate target before the all-time high of $2075.5. Meanwhile, the key support level remains at $1969.3, which was the low point recorded on April 19th.
• Gold prices have remained above $2000 for the month of May, as investors anticipate the end of the Federal Reserve's tightening cycle. Concerns about the impasse over the US debt ceiling have also contributed to bullish market sentiment.
• Gold could reach $US2100 per ounce by December as US banking woes, high interest rates and uncertainty around the debt ceiling dampen the global economic outlook and boost safe-haven demand, ANZ economists predict.