Gold rebounded last night from its $12 drop yesterday, trading in a range of $1414 - $1421, with the market retaining its nervous and choppy tone. After bouncing to $1418 during Asian hours (news of Iran launching a medium range missile supportive), gold slid back to triple bottom support at $1414 during early European hours, pressured by an advance in the US dollar (DX from 97.76 – 97.94, 2-month high). The greenback was lifted by weakness in the euro ($1.1151 - $1.1129, a miss on German Import Prices, ECB lowers inflation forecasts for inflation and GDP) and the pound ($1.2459 - $1.2423, persistent fears of no-deal Brexit under Johnson). Mostly firmer global equities were also a headwind for gold with the NIKKEI off 0.4%, the SCI +0.2%, European markets were up from 0.4% to 0.5%, and S&P futures were +0.3% (stronger earnings reports from Alphabet and Intel last night). Higher oil prices (WTI from $55.81 - $56.54, ongoing tensions with Iran) were supportive of stocks. Ahead of the NY open, however, gold rebounded to $1421 – despite the DX remaining fairly firm, with strong bargain hunting buying seen.
At 8:30 AM, the headline US Q2 GDP Report was better than expected (2.1% vs. exp. 2.0%) as well as Personal Consumption (4.3% vs. exp. 4.0%), and the GDP Price Index (2.4% vs. exp. 1.9%). S&P futures plunged (+3 to 3010, less chance of Fed easing aggressively), while the US 10-year bond yield climbed to 2.088%. The DX advanced to 97.99, and gold back off to $1414, where support at the triple bottom held again. After a closer look, a miss in the Core PCE (1.8% vs. exp. 2.0%) and a fall in Business Investment (-0.6%, worst since early ‘16) kept hopes for aggressive Fed easing alive. S&P futures...