AUSSIE 3-YEAR TECHS: (M5) Rallies Off Lower Levels

Gold remained on the front foot through Monday trade, albeit in limited liquidity with EU markets still closed. We track near $3424 in early Tuesday dealings, just off session highs from Monday (3430.60), which was a fresh record high. Gold gained 2.92% for Monday's session with broad USD weakness, coupled with risk off in the US equity space driving gains. 

• The RSI (14) on gold is in overbought conditions, last above 77, but we have been in this state on numerous occasions already in 2025, with the market comfortable buying gold dips. We have the 20-day EMA back under $3190. Lows from the end of last week were at $3284.
• Topside focus is likely to rest on round figure resistance at $3500. Note Goldman Sachs stated bullion could hit $4000 by mid next year (via BBG).
• US Tsy yields were sharply higher at the back end of the curve, the 10yr up 9bps to 4.41% in Monday trade. President Trump comments berated Fed Chairman Powell and reiterated a call for "preemptive cuts". This raised fears of Fed independence and added to the negative risk mood. The SPX fell 2.36%.