- Overnight activity – nervous and choppy, but trendline support holds
- · Gold continued to soften last night, trading in a range of $1522 - $1533.
- · Retained its nervous and choppy tone – typical of a market at or near multi-year highs.
- · After a move down to its $1522 low (support at up trendline from 8/1 $1400 low) during early Asian hours, gold rallied up to its $1533 top during later Asian time, but was capped in front of resistance at the old support level of $1535.
- · Gold’s rebound faded pullbacks in S&P futures (-5 to 2922), the US 10-year bond yield (1.51%), and the US dollar (DX to 98.46). The dollar was pressured from strength in the yen (106.54 – 106.29), which shrugged off mostly weaker Japanese economic data amid early risk off sentiment.
- · Gold retreated back to its $1522 low (trendline holds again) during European time, trading against a rebound in the DX to 98.61 (fresh 4-week high). The dollar was lifted by a weakness in the euro ($1.1060 -$1.1032) from a miss on German Retail Sales, Eurozone CPI, and Italy’s GDP and ongoing political turmoil and the pound ($1.2187 - $1.2158) as a Scottish judge refused to block Johnson from suspending Parliament. A move back up in the US 10-year bond yield (1.542%) and a bounce in S&P futures (+19 to 2946) helped by a statement from the Chinese Foreign Ministry (trade teams are maintaining effective communication) also weighed on the yellow metal. Equities were firmer despite a tug down from oil (WTI to $55.72) from week ending profit taking.
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