Some Light Downward Pressure

Gold slips to fresh session lows even with the BBDXY shy of best levels and Tsy yields operating at/around session lows, although bears can’t force a move sub-$1,905/oz.

• Our weighted U.S real yield monitor sits a little shy of recent cycle highs, while the BBDXY has pulled back from this’s morning’s fresh ’23 peak.
• Known ETF holdings of gold are continuing to trend lower and the measure sits at the lowest level seen since Mar ’20 (the initial COVID outbreak), although some official buying (most notably by the PBoC) has helped fill some of the demand void.
• Technically, gold traded higher last Wednesday but quickly pulled back from the session high. The yellow metal maintains a bearish theme and this week’s move lower reinforces this. Attention is on $1,901.1/oz, the Sep 14 low. This level marks a key near-term support and a breach would strengthen a bearish theme and expose $1,884.9/oz, the Aug 21 low. Resistance is at $1,947.5/oz, the Sep 20 high.