Gold is thinking about $2400 again (update: it breaks)

NEW YORK (May 17) Gold is at the highs of the day, despite a steady inch-up in Treasury yields.

Yesterday, gold topped out at $2397 before running into selling pressure at the big figure and fading to finish at $2376. It's recovered to $2395 with eyes on yesterday's high and the $2400 level.

Gold has never closed above $2400, though the intraday record high was $2431 on April 12.

The question for gold bulls is whether the buying fever in Asia and the Middle East has faded and whether the US can add another leg to it if/when the Fed signals rate cuts. Given the inevitability of that at some point, support for gold should remain, though maybe we see some profit-taking first.

ForexLive