June 12, 2024 03:38 GMT
Steady Ahead Of US CPI & FOMC Decision
GOLD
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Gold is little changed in the Asia-Pac session, after closing 0.3% higher at $2317.01 on Tuesday.
- Bullion was supported by lower US Treasury yields, which in turn were buoyed by haven demand associated with European Parliament elections and the surprise snap election called in France. Solid demand metrics at a 10Y auction added to US Treasuries’ strength.
- The 10-year yield finished 7bps lower at 4.40%, with 2-year was down 5bps to 4.83%.
- Later today, the US calendar delivers US CPI at 0830ET today, with the FOMC policy announcement at 1400ET and Fed Chairman Powell’s presser at 1430ET.
- The market ascribes no chance for a rate cut at this meeting but will be seeking guidance on the timing of the first rate cut. The dot plot projections are likely to show the median FOMC member expecting just one or two rate cuts this year (down from three previously projected).
- According to MNI’s technicals team, the yellow metal cleared support around the 50-day EMA, at $2,315.2, in last week’s sharp sell-off, opening $2,277.4, the May 3 low. Initial resistance to watch is $2,387.8, Friday’s high.
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