Gold traded lower overnight in a range of $1321 - $1332.10, pressed once again to support at $1321-23 (quadruple bottom, 3/29, 4/5, 4/6 and 4/23 lows).
It weakened against continued strength in the dollar as the DX rose to 91.18 (fresh 3-month high). The greenback was aided by a fresh 4-year high in the US 10-year bond yield (3.033%), and some softness in the yen (108.80 – 109.25, miss on Japan’s All Industry Activity Index), euro ($1.2235 - $1.2175, 2-month low), and pound ($1.3995 - $1.3935).
Global equities were a modest tailwind for gold, however, with the NIKKEI shedding 0.3%, the SCI fell 0.4%, European markets were down from 0.6% to 1.5%, and S&P futures were -0.3%. An unexpected rise in the API US Oil Inventory Report pushed oil lower (WTI down to $67.58) and weighed on stocks.
After the NY open, further strength in the DX (91.22) pressed gold through the quadruple bottom at $1321-23 to reach $1319, where support at the 100-day moving average held. However, a weaker opening to US stocks (S&P -25 to 2611, higher 10-year yield raising concerns over higher borrowing costs slowing the economy) led to a flight to quality that pushed the 10-year yield down to 3.007%.
The DX backed off to 91.04, and gold recovered. The yellow metal bounced back to $1322, where the former support became resistance and capped the advance.
Later in the morning, US stocks turned up (S&P +3 to 2636), despite a further drop in oil (WTI to $67.09, EIA reported an even higher build in US oil inventories than the API last night).
The 10-year yield climbed back to 3.026%, and the dollar made a fresh high (DX to 91.24). Gold was pressed lower, but support in front of...