Up, up and away for gold? The bulls are certainly looking poised and are angling for the next leg higher now as we approach European trading. Price is running above the $2,600 mark to fresh all-time highs as the post-Fed musings continue to play out.
Traders are starting to push odds of another 50 bps rate cut by the Fed in November and that is a tailwind for gold.
The run higher in gold this year has been quite unrelenting. The precious metal is up a whopping 26% year-to-date already. I’m an advocate for higher gold prices but the more this carries on, the more I feel that we’re overdue for a violent and sharp correction at some point.
In the big picture, overall sentiment remains largely positive for gold at this point. But I would definitely like to see a retracement of sorts all before we get to the seasonal buying rush in December to January. So, we’ll see I guess.