Gold defies headwind. XAU/USD is trading at around $1,930, which puts it within the same trading corridor of between $1,900 and $1,950 in which it has been fluctuating for most of the time since mid-March, strategists at Commerzbank report.

Gold still appears to be in demand as a safe haven and store of value 

“The EUR/USD exchange rate is below 1.09 and the trade-weighted dollar index has climbed to its highest level in nearly two years following further hawkish Fed comments. Furthermore, yields on ten-year US Treasuries have risen to their highest level in over three years and real interest rates are gradually approaching zero; the last time they were in positive territory was a good two years ago. None of this has had any impact on the gold price, however.” 

“Gold is showing relative strength. It still appears to be in demand as a safe haven and store of value, even if ETF inflows this week have been very moderate so far.”