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Gold hits a wall at $2,360 again

On Friday Gold did make some initial progress above $2,350 after the slight miss on the US PCE data. However, that progress stalled around of $2,360 yet again. The high seen was set at $2,359.69, but pretty soon it was reversing back underneath $2,350 and once that level gave way, it was downside all the way into and after the European close. Gold fell back to a low at $2,320.69 and later closed $15.74 lower, at $2,327.33. There is little doubt here; that the combination of another failure around $2,360 and the month end forced profit-taking to really impact the price action ahead of the weekend. That is because Gold handed back nearly $40 from the highs, even as US 2 year yields fell back towards 4.85% at the same time. Overnight, gold has suffered from a lack of risk aversion. A slight up-tick in yields and that has kept Gold camped very close to the lows seen on Friday. In fact it has traded a little lower than that ($2,320.11), but as you can see; that $2,320 level has remained intact so far. Gold is currently trading at $2,322.50
 

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