Fresh Lows Back To 2020

Gold has seen little support today, despite fresh risk aversion flows in the market. The precious metal last tracked just under $1639 (-0.30% for the session). On-going USD strength, particularly against the pound, has been the main driver of sentiment today.

• We dipped below $1630 briefly in earlier trade today, before rebounding. We have since not drifted too far away from the $1638/$1642 region, although the bias remains skewed to the downside.
• Lows close to $1600 from early April 2020 around $1610 are the likely next target.
• We continue to see higher core yields. To the extent this weighs on broader equity market sentiment further could benefit gold at some stage but with this could be countered by further on-going USD strength.