Daily Market Comment – Yen defies intervention warnings, gold loses its shine
- Threats of FX intervention don’t do much to boost the yen
- Currency pairs trapped in narrow ranges, stocks lick wounds
- Gold under heavy pressure, US retail sales coming up next
Gold could not escape the Fed inferno without burns either. With the dollar powering up and real US yields reaching multi-year highs, the precious metal has taken heavy damage as the opportunity cost of holding onto it increased sharply. Bullion is approaching the danger zone around $1680, which served as a springboard for the price action several times after the pandemic and now includes the 200-week moving average as an extra layer of protection.As for today, the spotlight will fall on the latest batch of US retail sales, alongside a meeting between the leaders of Russia and China.
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