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.
Fitch has downgraded the US government’s top credit rating. Fitch downgraded the United States to AA+ from AAA citing fiscal deterioration over the next three years.
The gold market is fluctuating against the 18-day average of closes with a downside bias. You're fighting here, but not going anywhere. Momentum is down.
