Diamond News

Gold was choppy again last night, trading in a range of $1285.45 - $1294.40, and against movements in the USD.

The yellow metal rose to its $1294.40 top during Asian hours as the resurgent DX pulled back to 93.11, hurt by some strength in the yen (110.41 – 110.07), euro ($1.18 - $1.1838), and sterling ($1.3480 - $1.3564, hopes for Britain staying in the Customs Union).

Later on, the DX bounced to reach 93.56 - helped by an official denial from Teresa May that the UK will be leaving the Customs Union that knocked sterling back to $1.3473, and a pullback in the euro ($1.1777).

This pressured gold down to a fresh 5-month low of $1285.45, but support in front $1284 (up trendline from 12/15/16 $1123 low) held.

Another move up in the US 10-year bond yield to 3.122% was a headwind for gold, while global equities were mixed.

The NIKKEI was up 0.5%, the SCI slipped 0.5%, European markets were up from 0.2% - 0.4%, and S&P futures were -0.2%.

Oil moving to a fresh 3 ½ year high (WTI to $72.27 – Iran supply worries) were supportive of stocks.

At 8:30 AM, a worse than expected reading on US Jobless Claims (222k vs. exp. 215k) slightly overshadowed a stronger reading on the Philly Fed Index (34.4 vs.. exp. 21).

The US 10-year yield declined to 3.091%, and the dollar slipped to 93.38. Gold popped higher, but it was capped at $1291.50.

Later in the morning, US stocks turned higher (S&P +10 to 2732) after a weaker open, with the energy sector leading the gainers.

The 10-year bond yield climbed back to 3.115%, and the DX clawed back to a fresh high at 93.57. Gold was forced...

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