Supported By Lower Global Yields

Gold is slightly higher in the Asia-Pacific session, after closing at 1962.73 (+0.2%) on Wednesday.

• Bullion rose as bond yields declined following weaker economic data, softer equity markets, and Fedspeak (Jefferson/Harker) pushing back against a June hike.
• As far as FOMC dated OIS was concerned, Fedspeak weighed most heavily, especially for June OIS pricing with most of the day’s decline coming after Jefferson/Harker, to leave just +8bp priced, whilst it no longer fully prices a hike come July with +20bp.
• Gold experienced a decline of 1.4% in May, reversing the gains it made earlier in the month when it surged to nearly record levels due to concerns about a potential US default. However, these worries have subsided as President Joe Biden and Republican House Speaker Kevin McCarthy expressed optimism that legislation will be passed by lawmakers to prevent such a scenario.
• Fears of economic weakness have Wall Street strategists seeing a longer-term bull case for gold and the miners who dig up the precious metal even as the price of the bullion nears all-time highs. (link)