Gold backs off from highs above $2,458

Yesterday evening gold got a boost from reported comments by Iran, vowing to strike back at Israel following the attack in Tehran. The metal jumped towards $2,450, as it also got a lift from the comments by the Fed boss, outlining his desire for a rate cut in September. That sent US yields markedly lower and that helped propel the metal. The relapse in the USD/JPY those comments produced also helped the move higher. The further fall in the USD/JPY today added another layer of support and that pushed gold to a new interim high at $2,458.43 and hence another step closer to the record high at 2,483.73 reached last month. However, gold has backed off somewhat this morning as the USD/JPY rebounds back above 150 a short while ago. Gold will be watching very closely any further developments in the Middle East today. It is currently trading at $2,446.50