(09 JUNE 2020)DAILY MARKET BRIEF 2:Gold remains offered above the $1700

<p>The US dollar remains weak, but the capital outflows appear to be losing some pace as investors question whether it is time for a downside correction in equities. The US 10-year yield remain capped below 0.90%. Gold remains offered above the $1700 per oz, even though the rise in US yields increases the opportunity cost of holding gold, particularly at these high levels, where the upside potential is limited. But, there is a clear restraint in selling the precious metal further below $1670, as the levels in equity markets suggest that a downside correction would be healthy and no investor wants to get caught in a renewed risk sell-off having liquidated gold positions. There is a toppish feeling in EURUSD as the sell-off in US dollar loses pace. Given that the soft USD has been a major catalyzer in the latest euro rebound, a broad-based recovery in the dollar should easily wipe a part of the recent euro strength. But the hope of seeing a 750-billion-euro fiscal package materialize and th</p>