Gold 10 mins
Gold took a dive yesterday as the US dollar strengthened and Treasury yields rose but today it’s unwinding. Gold is up $20 and has nearly erased all of yesterday’s losses.
That comes with the US dollar softer across the board in part due to a poor initial jobless claims report. However it doesn’t come with any notable Treasury move as yields are flat so far today.
Zooming out, yesterday gold held the recent lows and hasn’t yet closed below the 100-day moving average.
Gold 100dma
Justin highlights the importance of the Fed decision and US CPI next week as key potential pivot points. I’ll also mention China and the potential for rate cuts there. Today we saw banks lower deposit rates and there’s also a push for new car loans in a sign of stimulus. Better economic confidence in China could help to lift gold.
Finally, the unfolding FX disaster in Turkey is a notable factor as well. If it gets increasingly disorderly that could lead to some gold buying but that has to be weighed against the government selling gold reserves to shore up the plunging currency.