Gold was a little choppy overnight, trading either side of unchanged and in a narrow range of $1278.65 - $1282.50 after Friday’s $23 trashing.
It rose to its $1282.50 high early during Asian hours on worries over the US-China trade dispute. However, gold dipped back during early European time to its $1278.65 low against strength in the dollar (DX to 95.05).
The greenback was helped by a decline in the euro ($1.16.10 - $1.1565, political jitters in Germany over immigration policies) and the pound ($1.3276 - $1.3225).
Later on during European time, the DX pulled back to 94.70 as the euro ($1.1624) and the pound ($1.3263) rebounded, and gold recovered to $1282.30. Mostly weaker global equities were a tailwind for gold with the NIKKEI off 0.8%, China closed, Eurozone shares were 0.4% - 1.4% lower, and S&P futures were down 0.6%.
Oil prices were a little firmer (WTI from $64.60 - $65, all awaiting the OPEC meeting on 6/22 to decide forward production policy) and were supportive of stocks.
After opening weaker (S&P -23 to 2756), US stocks pared losses during the late morning and into the afternoon (S&P -5 to 2774, telecom sector lagging), helped by a continued rise in oil (WTI to $65.95).
The US 10-year yield rose to 2.932%, with some additional selling coming after a report showing foreign debt holdings were cut by $10B in March and April (Russia’s cut in half). The DX recovered to the 94.80-85 level, and gold was pressed a little lower.
The yellow metal took out its overnight low at $1278.65 to reach $1277, but bargain hunting buying in front of Friday’s $1275.50 low supported it there.
In the afternoon, some mildly dovish comments from the Fed’s Bostic (fears over a...