Steady After Consolidating On Wednesday

Gold is 0.1% higher in the Asia-Pac session, after closing 0.3% higher at $2025.55 on Wednesday. Bullion was supported by the continuing decline in long-dated US Treasury yields.

• US Treasuries finished the NY session 1bp cheaper to 9bps richer across the major benchmarks, with the curve flatter. US Treasuries firmed after the latest ADP Employment printed softer than expected. This followed Tuesday's JOLTS Job Openings which showed the biggest fall in 6 months. A reminder that Non-Farm Payrolls crosses tomorrow. Gains in US Treasuries marginally extended after lower than forecast Unit Labour Costs.

• Lower oil also assisted US Treasuries. Oil was pressured, with WTI falling ~4% and breaching the $70/barrel handle, by concerns about excess supply weighed despite a fall in US Inventories.
• According to MNI’s technicals team, gold is consolidating its pullback from Monday’s all-time high but is proving resilient to net USD strength so far. It remains off resistance at $2072.7 (50% retrace of Dec4-5 down leg) whilst support is seen at $2005.6 (20-day EMA).