Steady In Asia-Pac After A Very Heavy Wednesday

Gold is steady in the Asia-Pac session, after closing -1.3% at $1875.12 on Wednesday Bullion faced downward pressure driven by a strengthening US dollar, which surged to a new year-to-date high, primarily due to the soaring US Treasury yields, reaching fresh multi-year peaks.

• Both the 2-year and 10-year yields concluded the day 7 basis points higher, settling at 5.135% and 4.61%, respectively. These moves were influenced by factors such as the rising oil prices, the looming possibility of a federal government shutdown within days, and escalating labour disputes, notably involving the United Auto Workers.
• He suggested that the Federal Reserve might need to implement more than one additional interest rate hike. However, he also acknowledged that a potential US government shutdown or an extended strike by automotive workers could potentially slow down the economy, potentially obviating the need for the Federal Reserve to deploy its policy tools to combat inflation.
• According to MNI’s technical team, the yellow metal pushed through two support levels including the bear trigger at $1884.9 (Aug 21 low). However, Wednesday’s low of $1872.7 stopping short of next support at $1871.6 (Mar 13 low).