Is Gold Going Down? Not quite..

Personally, I do not think so. I would love to believe that gold is currently experiencing a moderate pull-back. A bearish move is more likely to be confirmed if GLD falls below $175 (if you are risk adverse) and $170 (if you are less risk adverse).

GLD - aug 2020

If DXY goes up, GLD tends to go down. Is DXY going up? Currently, DXY appears to be on a down-trend and no clear upward reversal has been observed.

DYX - aug 2020

What about US yield? If US10 year rate goes up, GLD tends to go down. As of today, there is no clear upward reversal / rebound in the US10 year rate.

US10 - aug 2020

Latest Developments: Gold edged higher on Tuesday, albeit lacked any strong follow-through and held well within a four-day-old trading range.

The precious metal stalled the previous day’s sharp intraday retracement slide from multi-day tops and managed to find some support near the $1924 region. The emergence of some fresh selling around the US dollar was seen as one of the key factors that benefitted the dollar-denominated commodity.

However, a combination of factors held investors from placing any aggressive bullish bets and kept a lid on any meaningful positive move. The global risk sentiment remained well supported by the latest optimism over a potential vaccine and treatment for the highly contagious coronavirus disease.

Disclaimer: This post is not an investment advice or endorsement. Please refer to the general disclaimer of this blog.

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