What do you watch for when trading Gold? Are you looking for it to move in line with Oil, Bonds, the Euro
For example: The move this morning at 8:30, what caused it? Bonds were up, the yen was up against the USD, but why did Gold decide to just spike $10 and not have a nice gradual move like the other ones.
Over the long run (3 months+), gold has a fairly stable correlation with oil and silver. In the short term (like within a day), it's much more susceptible to news shocks, noise, and other idiosyncrasies.
keep your eye on the dollar index. it broke the 200day to the downside, and I think that is fueling the rally in gold today.
everything priced in dollars was bought, and the dollar was sold this was all based on a hypothetical (and most probably incorrect) analysis that the fed will agree to re-instate QE2.0 and $1T worth of treasuries in buyback program was issued today by boa/ml who is notoriously inaccurate when it comes to fed calls this means that next week if its not announced - look out below