We've got our second test of the intermediate uptrend line this morning. Gold has bounced again. I'm going to caution again...
Iraq's central bank has been steadily buying gold as part of its strategy to diversify its foreign assets but recently added 2% to its gold reserves in a single day.
The U.S. Treasury has to do a lot of funding! needs to sell $1 Trillion by the end of the year to refund the treasury, that is going to be a headwind if the money comes from bank deposits.
The debt ceiling finally passed (as expected) but then next comes the fallout. It's just a suspension then in a year and half they get to do it all over again.
As it stands right now, gold has been rejected from the $2,000 level and appears to be in the declining phase of the intermediate cycle.
Gold is back to the 18 week moving average and looking to establish itself around here. I am not bearish on gold..
Either way, ’twas a “nothing week” for Gold, which given the approval of the DDD ought rightly have sent the yellow metal to the moon.
Positions as of 30 May, 2023
The bottom line is gold’s hawkish-Fedspeak-driven May pullback has likely mostly run its course. Top Fed officials have been talking tough on future rate hikes, but now they have to..
A super dove at the Fed speaks yesterday but ADP was super strong. The jobs report out this morning will be a market mover. How strong of a number will it be? Gold had a bounce..