Gold has been trading in one direction since early March, but the fever appears to have calmed today, with prices down $59 to $2,332.
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There is minor support from a vague trendline at $2,310, but the highest level is the old all-time high near $2,200.
The driving force for gold so far this year has been Asian demand, likely from the PBOC. This has been supplemented more recently by retail and some financial purchases. That appetite will be tested by this move, as there have been few dips to buy over the past couple of months.
The problem right now is that rising bond yields are competing for capital. US 2-year bonds pay almost 5% and until this rate starts to fall due to Fed rate cuts, this will remain a headwind for gold.
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