Pushing Back Above $1855

Gold has recovered modestly through the session, up around 0.25% from NY closing levels to $1855. We remain comfortably within recent ranges.

• Today's price action has seen the late recovery from the Friday NY session extend. Oil is tracking higher in the region, while the USD is softer against the majors, although moves are quite small at this stage. The DXY remains above 102.00. Other cross asset signals are less supportive for gold though.
• Equities are tracking higher in terms of US futures (close to 0.5% for the S&P500), while China/HK have recovered after an indifferent start to post gains in the 0.5-1.0% region. Likewise for Japanese equities.
• US yields are a touch higher in terms of Cash Tsys (10yr close to 2.94%), which is building on gains from the Friday session. The real US 10yr yield still edged down though on Friday (from 0.26% to 0.22%).
• Gold weakness on Friday broadly tracked the rebound in USD sentiment. This saw us move down to sub $1850, from above the $1870 level.
• Elsewhere, the Bolivian congress will debate a bill that allows the central bank to buy gold produced in the country to raise its FX reserves. Currently the local central bank holds $2.5bn in gold reserves (as at the end of May).