Gold traded higher overnight in a range of $1339.50 - $1352.40.
It triggered some buy stops over yesterday’s $1343 high along with the double top at $1347-48 (3/28 and 4/2 highs) and the $1350 options strike to reach its high, where it was capped in front of resistance at $1354 (down trendline from 1/25/18 $1366 high).
Gold was supported by weakness in the US dollar (DX from 89.64 – 89.45, fresh 2-week low), which was pressured by strength in the yen (107.25 – 106.70, stronger than expected Japanese Machine Orders, PPI) and the euro ($1.2350 - $1.2395, Draghi says confident inflation will rise to ECB’s goal).
Mostly weaker global equities were also gold supportive with the NIKKEI off 0.5%, the SCI rose 0.6%, European shares were off 0.1% - 0.5%, and S&P futures were off 1.1%.
Some bellicose tweets by Trump (after Russia’s ambassador to Lebanon said Russia would shoot down US missiles headed to Syria) also rattled markets and were gold supportive:
Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and “smart!” You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!
Our relationship with Russia is worse now than it has ever been, and that includes the Cold War. There is no reason for this. Russia needs us to help with their economy, something that would be very easy to do, and we need all nations to work together. Stop the arms race?
At 8:30 AM, a lower than expected reading on US CPI took the US 10-year yield down to...