Gold up $17 to $1205
Gold prices remain deeply depressed but is having its best day in five weeks. A big reason for the gains is the political turmoil in Italian. Ten-year yields are up another 10 bps today to 3.40%.
Separately, Goldman Sachs is out with a bullish note on gold. They see three reasons for a rebound starting with a stabilization in emerging market growth and EM currencies. Second, the say a recent liquidation in specs as a one-off cleaning up of speculative positions rather than the start of persistent developed market outflows. Third, they say that a rising interest rate environment isn't necessarily bad for gold.
Technically, gold is a non-starter until it can get above the late-August and September highs.