Gold was fairly steady overnight in a narrow range of $1321.50 - $1326.50, and fading some modest movements in the US dollar. It rose to its high of $1326.50 during Asian time as the DX traded down to 91.07, weighed by some strength in the yen (109.47 – 109.24).

During European time, gold retreated to its $1321.50 low as the greenback rallied back (DX to 91.33 – fresh 3-month high), aided by weakness in the euro ($1.2188 - $1.2156 – miss on German GfK).

A pullback in the US 10-year bond yield (2.988%) was gold supportive, but mostly firmer global equities weighed on the yellow metal.

The NIKKEI rose 0.5%, the SCI fell 1.4%, European shares were up from 0.2% to 0.5% ,and S&P futures were up 0.3%. Firmer oil prices (WTI from $67.96 - $68.57, concerns on Iran sanctions) aided the strength in stocks.

At 8:30 AM, a barrage of US economic data was accompanied by a press conference by the ECB’s Draghi.

Markets initially focused on dollar bullish reports on Jobless Claims (209k vs. exp. 230k, lowest since 1969), and Durable Goods (2.6% vs. exp. 1.6%), and some dovish comments from Draghi (reiterated rates will remain unchanged well after asset purchase program ends, headline inflation around 1.5% for rest of the year).

The DX rose to 90.28 as the euro dropped to $1.2146. Gold was pressured to $1321.70, where support in front of the overnight low held.

Later on, markets seized on Draghi’s comments that the recent bout of Eurozone weakness were due to temporary factors and that the ECB expects solid and broad based expansion of the euro area economy.

That turned the euro sharply higher ($1.209), and sent the DX down below 91 (90.95). Gold popped...

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