Weaker In Asia-Pac Dealing After a Steady Monday

Gold is 0.3% weaker in the Asia-Pac session, after closing within Friday’s range yesterday. With the US out for the observance of the Labor Day holiday, newsflow and market movements were limited.

• US tsy futures were weaker and European government bond yields were 2-4bp higher across benchmarks as the market wagered that the ECB will keep rates higher for longer, even as Governing Council member Mario Centeno warned his colleagues that there’s a risk of raising them too far.
• According to MNI's technicals team, the current uptrend remained intact with resistance at Friday’s high of $1953.0 after which lies $1963.3 (76.4% retrace of Jul 20 – Aug 21 bear leg).
• Nevertheless, the USD Index looks to have resumed the primary uptrend off the mid-July lows, a factor that should keep the precious metals subdued despite the OIS-implied Fed rate path softening recently.