Gold is up by 0.8% on the day at session highs near $1,649
Gold is enjoying a decent start to the day but the upside move so far comes after a bit of a late scare towards the end of trading yesterday, where price fell sharply below the 100-hour MA (red line) in the closing stages.
However, since then, price has gradually recovered with buyers now looking to test waters back above the 100-hour MA in establishing a more bullish near-term bias.
Treasury yields are also a little weaker to start the session and that is helping to give gold a bit of momentum to try and push higher. A key near-term test to the upside would be for gold to try and break back above $1,660 to sustain some momentum.
Otherwise, the exhaustive price action yesterday may not be too encouraging. Gold has been following the move in yield rather closely but yesterday was a bit different:
Despite 10-year Treasury yields slipping close to 1.30%, gold buyers failed to find conviction for a push higher. This could all still be largely attributed to the recent move higher being a case of rising 'too far, too fast' but as long as yields stay pressured, gold will be able to find some support in the near-term.
