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Thursday’s Gains Supported By The Middle East Conflict, A Weaker USD & Lower US Yields.

GOLD

Gold is +0.2% in the Asia-Pac session, after closing 0.25% higher at $1984.71 on Thursday.

  • This precious metal rebounded from a low of $1,971.87, driven by a weakening USD.
  • Furthermore, gold continues to reap the benefits of the ongoing Middle East conflict, although the somewhat erratic trading in US Treasuries has added a level of uncertainty to the outlook.
  • However, on Thursday, we observed a significant decline in yields across the US Treasury curve following the release of the latest round of US data. Participants appeared to focus on the weaker-than-forecast Core PCE Price Index (+2.4% q/q versus +2.5% est. and +3.7% prior) and Jobless Claims (210k versus 207k est. and 198k prior), which were at their highest in 5 months.
  • Additional support was seen in the US Treasury space after solid demand metrics for the latest 7-year auction.
  • Resistance for bullion is seen at $1997.2 (Oct 20 high), according to MNI’s technicals team.

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