Gold intermarket: DXY soft on 96 struggles, commodities pick up the bid

Gold has pared back the losses from the European/London sell off from $1,215.50 to $1,207.49 lows with the DXY now testing a break below the 96 handle having made a session low of 95.95 so far. 

US yields are down 0.60% in the ten-year benchmark while commodities, in general, stabilising across the board. The yen has also been testing a break below the 114 handle, albeit offers in USD/JPY have so far failed and despite whatever selling interest, there might have been overnight from corporate hedgers in Japan. 

US: Economy good enough? - ING

Despite concerns over the US economy from last week's mixed jobs report, risk is evidently on at the start of the week, with the Wall Street benchmarks following in suit of a bullish day in European shares, thus gold may struggle again at these levels and appears to be failing on the upside printing lower highs.

Gold levels

Gold needs to break $1,1215, $1,1220, and $1,1229 for a look in at $1,1235 26th June low. To the downside, should $1,205 give out, a break of $1,1204.80 opens the probability of momentum through $1,200.00 and March lows $1,180 is the YTD low.