Gold has rallied and continues to catch a bid with risk-off markets and a drop in US yields.
Gold has rallied and continues to catch a bid with risk-off markets and a drop in US yields. the 10-year is down -1.92% at the time of writing showing a low of 2.1278%-2.1782% the highs and well of base exposing plenty of downside int he DXY.
The DXY has not been above the 98 handle since the 18th May. Continued concerns about the US economy not improving as much as the market has priced in with respect to the Fed’s hawkishness is highly damaging to the dollar that has made fresh lows of 96.53 today so far. Gold has made subsequent highs of $1,296.41.
Meanwhile, there are concerning implications of the conflict between Saudi Arabia and Qatar and yen are another driving force on an intermarker basis. USD/JPY is down -0.91% at time of writing. Other Gold fundamentals this week come with the European Central Bank announcements, the U.K. general election and former Federal Bureau of Investigation boss James Comey’s testimony before a Senate panel all on Thursday. Gold has met the previous highs of 1295.51 16t April highs and broken that level, opening a case for the resumption of the 1122 Dec 2016 rally with $1,302 on the cards, the 31st Aug 2016 low.