Intraday volatility will be high before the release of US July inflation numbers this week. Traders are confused on the short term trend of the US dollar index and bond yield. Incoming news will be the key.
Market extremes never last long, stock bubbles inevitably pop and roll over into serious selloffs. Investment capital inflows will accelerate gold’s strong upleg to new record highs.
In the gold market, you're staying above the 18-month moving average of closes. As long as you stay above 1855.80, you have a bullish bias and a long, firm chart.
To cause a selloff in gold, silver, copper, base metals, and energies, US July nonfarm payroll has to come it at or above 2,00,000 along with a sharp fall in unemployment rate.
Gold's headwinds are the strong US dollar and interest rates. When you can lock in a 4 to 5% interest rate for 5 years, you've got to ask yourself, why do I need to own gold?
A triple whammy in the form sharp rise in US bond yield, rise in the US dollar Index and fall in US stock markets caused the selloff in gold, silver, copper and energies yesterday.
