Gold gains a bit more traction but caution remains
Gold has lifted back above $1740 an ounce this morning. The modest rebound comes as the Yen makes some progress (as noted in previous updates) and the US 10 Year Treasury yield hovers just above 1.50%. To be honest, given those driving influences, it is a little surprising that gold is not making a little more progress than it has thus far. It is probably fair to say that the metal remains cautious after yesterday and not taking the moves in the Yen and bonds for granted. That does rather make sense, as we know how quickly those two markets can turn around and it is likely that any gold buyers are wary of getting caught long again for that reason. Nevertheless, it has made a little progress this morning, but from a technical perspective, the move back above 1740 is not of any special consequence. Gold is just now trading at 1742.50
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