Steady After Another Solid Gain On Monday

Gold is slightly lower in the Asia-Pac session, after closing 1.5% higher at $2114.48 on Monday.

• Monday’s move continued the surge higher after punching through the latest resistance at $2100. The all-time high is $2135.4 (Dec 4 high).
• Bullion’s move came despite US Treasuries paring much of Friday’s post-ISM Manufacturing’s gain. US Treasury yields finished the NY session 3-7bps higher, with the curve flatter.
• Traders are now likely to look ahead to Fed Chairman Powell's policy testimony to Congress Wed-Thu and the US Payrolls Report Friday.
• Bloomberg quoted TD on the yellow metal: “We still think it could go higher as well,” said Ryan McKay, senior commodity strategist at TD Securities. That’s because some discretionary macro traders are underinvested in the metal “relative to historical norms heading into a Fed cutting cycle.”