Gold is 0.5% higher in today’s Asia-Pac session, after closing 1.9% higher at $2611.83 yesterday.  

• Precious metals benefitted from the pullback in the dollar yesterday. The precious metal had been hit by the greenback rallying to a two-year high following Donald Trump’s election win, as well as signs the Fed may have to slow the pace of rate cuts due to the inflationary policies the president-elect is pledging. Lower rates are typically positive for gold, which doesn’t pay interest.
• Yesterday Goldman Sachs reiterated its forecast for gold to reach $3,000/oz next year, noting that the recent sell-off provided an attractive entry point to buy the yellow metal.
• According to MNI’s technicals team, the long-term trend condition in gold remains bullish, with firm resistance seen at $2,653.2, the 20-day EMA.
• Meanwhile, silver is outperforming and was up over 2.5%. For silver, bullish conditions remain intact and the bear cycle that started on Oct 23 appears to be a correction - for now. Initial firm resistance to watch is $31.594, the 20-day EMA.