Steadying Above $1,700/oz

Gold deals ~$4/oz firmer to print ~$1,721/oz at writing, operating towards the upper end of its range established on Wednesday.

• To recap, the precious metal closed ~$10 lower on Wednesday, paring gains from its recent two-day rally after above-expectations U.S. ISM services and ADP employment data contributed to a limited rally in the USD (DXY) and U.S. real yields.
• The recent rise in the DXY and nominal U.S. Tsy yields comes as sentiment re: a “Fed pivot” has moderated from its extremes following softer-than-expected JOLTS job data on Tuesday.
• Atlanta Fed Pres Bostic (‘24 voter) weighed in on the matter late on Wednesday, stating that the “inflation battle is likely still in early days”, reiterating that weaker economic data would not deter further Fed rate hikes.
• Looking ahead, a swathe of Fedspeak is due later on Thursday, ahead of the U.S. NFP print on Friday.
• From a technical perspective, gold has established a short-term bull cycle. Initial resistance is seen at ~$1,729.5 (Oct 4 high), with further resistance located at $1,735.1 (Sep 12 high and key resistance). On the other hand, initial support is seen at $1,695.2 (former trendline resistance).