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Gold rebounds as Yen gains

Gold took a hit yesterday afternoon, after stalling around $2,042 again. The drop back came as the USD/JPY jumped above 146.00 and US yields rose following the firmer than forecast US CPI data. Eventually that saw gold fall back to a fresh low on the week, at $2,013.40 just after the 4pm London FX fix. However, it did not stay down for too long and as the USD/JPY handed back those earlier gains, that was the catalyst for the metal to rebound once more. Gold later closed in the US at 2,028.91. It has rebounded a bit more so far this morning, but as yet not back above $2,040. The high seen so far has been set at $2,037.16. Perhaps it would make sense, if the metal were to rise above the highs seen yesterday afternoon, at 2,042.75, it might then flip that move to 2,013.40. That is not to say it will though and much will depend on the price action in the USD/JPY and US treasury bonds today of course too. Gold is currently trading at $2,036.40
 

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