Gold advanced overnight in a range of $1301.25 - $1306.65, tripping some buy stops over $1303 (down trendline from 4/11 $1365 top).
However, resistance at $1306-08 (triple top, 5/24, 5/25, and 5/29 highs ,200-day moving average) capped the advance. It was boosted by weakness in the dollar as the DX softened from 94.14 – 93.71.
The greenback was pressured by early strength in the yen (108.92 – 108.53, stronger Japanese Housing Starts, mo. end selling from Japanese exporters), and the euro ($1.1660 - $1.1724, fears of a potentially disruptive early election in Italy easing, stronger Eurozone CPI).
Global equities were mostly firmer and a headwind for gold with the NIKKEI up 0.8%, the SCI up 1.8% (stronger Chinese PMI), Eurozone shares ranged from -0.3% to +0.4%, and S&P futures were +0.1%.
Weaker oil prices (WTI from $68.30 - $67.56, API report showed unexpected builds in US inventories, weighed on stocks).
Gold was also supported by a report during late European time that the US metal tariffs on Mexico, Canada and the EU are 99.9% done, and will be in effect from midnight tonight.
At 8:30 AM, stronger than expected reports on US Personal Spending (0.6% vs. exp. 0.4%) and Jobless Claims (221k vs. exp. 230k) helped lift S&P futures to 2727, and brought the DX up to 94.10.
Gold plunged back under the $1303 level to reach $1299, but was met with some bargain hunting bids that brought it quickly back to $1300.
US stocks opened weaker (S&P -13 to 2711, consumer staples lag), with the earlier news of US trade tariffs increasing global trade tensions.
Stocks were also hurt by a much weaker than expected Pending Home Sales Report (-1.3% vs. exp. 0.5%). The US 10-year yield fell...