Rates remain stubbornly high and US 10-year real yields crept into positive territory today for the first time since the pandemic.

That's -- and most of Asia on holiday -- hit the gold market hard. The precious metal is down $33 to $1861, which is the lowest since mid-February.

Gold daily

Technically, this is a tough blow. The rally above $2000 failed in March to create a double top with the 2020 peak. It looked like bulls would get another crack at it in mid-April but a failed challenge of $2000 on April 18 marked the top. Now support has given way and it comes with real yields rising.

The US is contemplating seizing Russian dollar reserves in a move that will make all regimes think twice about holding USD rather than diversifying into gold or other commodities. But those changes come slowly and they're not helping good in a poor risk environment with rising yields and a hawkish Fed.

The bulls will try to regroup around $1800.