Steady In Asia Despite Assassination Attempt

Gold is steady in the Asia-Pac session, after the attempted assassination of former US president and Republican contender Donald Trump over the weekend.

• On Friday, bullion closed 0.2% lower at $2411.43 after higher-than-expected US PPI data.
• The weekly gain of 1% nevertheless kept the yellow metal around its highest level since May 22.
• PPI increased 0.2% m/m, and core prices rose by 0.4%, above the 0.2% median forecast. The pickup in core PPI was driven by a jump in retail and wholesale margins and is unlikely to be sustained, according to analysts. Also, most of the inputs for the core PCE deflator support forecasts for a tame print, well below the Fed’s June FOMC forecast.
• US Treasuries ended the week with a bull-steepening. The US 2-yield yield was down 6bps, with the 10-year down 3bps.
• Lower rates are typically positive for gold, which doesn’t pay interest.
• According to MNI’s technicals team, the breach of $2,387.8, the Jun 7 high, has opened key resistance at $2,450.1, the May 20 high. Initial support to watch lies at the 50-day EMA, at $2,336.2.