OK metalheads, wth is going on with the price of gold? - Is there some military operation at work? - Corona virus? - Election Jitters? - China? - Superbowl halftime show? The U.S. economy is red hot... why are peeps buying into gold? is their capital not better placed in the equity markets? ...but candlesticks don't lie. p.s. You metals people scare me a bit.
Maybe market starting to realize that endless CB liquidity + $1T+ annual increases to the US national debt during what is claimed to be the greatest economy ever (which of course means we need negative interest rates and QE immediately) might not be a sustainable condition.
Pay attention in terms of other currencies... Notice when things BEGAN to get interesting. Just saying. XAU/EUR https://www.tradingview.com/x/eZHSc4Nf/ XAU/JPY https://www.tradingview.com/x/XBfrg6R5/ -------------------------------------------------- XAU/USD https://www.tradingview.com/x/ps0ed3KG/
That doesn't explain the Dollar Index. Or the conventional wisdom that in general, as the USD rises, gold (and other commodities) move down.
So on one hand, jitters about a known future event in the USA means the jitters are buying the dollar. And on the other hand, buying the dollar because of the superior US economy(which is debatable on some metrics). Meanwhile, gold is breaking out to multi-year highs in the weakening currencies as well as the strengthening USD, and the ET community at large is calling for end of days for the stock market. Pretty dichotomous if you ask me. Oh wait, I forgot the stock market portends the future, just like it did in '07-08. Yea, that's it.
Another reason why people would buy dollar today is of its higher interest rate relative to other major currencies.
And physical gold does not pay interest or dividend. The "for" USD bullet points do not explain the new multi-currency bull market in gold, unless the REAL problem is non-USD based. [wink]