It's been one-way trading in gold since the start of March but the fever appears to have broken today, with prices down $59 to $2332.
gold daily
There's some minor support from a vague trendline at $2310 but the bigger level is the old all-time high near $2200.
The driver for gold so far this year is Asian demand, likely from the PBOC. That's been supplemented more recently by retail buying and some financial buying. That appetite will be tested by this move as there have been few dips to buy in the past two months.
The problem right now is that rising bond yields are competing for capital. US 2-year notes pay nearly 5% and until that starts going down because of Fed rate cuts, it will remain a headwind for gold.
