March 10, 2023 03:56 GMT
Thursday’s Rally Consolidated In Asia
Gold has benefited from the pullback in Fed terminal rate pricing, which sits nearly 25bp off of the peak pricing witnessed on the OIS strip just over 24 hours ago, operating just below 5.50%. This came in lieu of softer than expected U.S. labour market data and worry surrounding the U.S. banking sector given the troubles of Silicon Valley Bank.
- Spot gold has largely consolidated the gains registered on Thursday, last dealing little changed around the $1,830/oz mark.
- Technically, trend conditions in gold remain bearish after Tuesday’s strong sell-off reinforced this theme. The yellow metal needs to breach $1,858.3/oz, the Mar 6 high, to signal scope for a stronger bullish reversal.
- Known ETF holdings of gold have registered a fresh cycle low.
- Friday’s NFP report and any developments in the banking sector will set the tone ahead of the weekend.