There is something of a ‘buy everything’ mood in the market today with stocks, bonds and commodities all strong today. The was some worry that Powell would spoil the party but he stuck to the recent script and slightly soft readings on ADP and JOLTS highlighted a slowing economy.
gold daily
Gold is a big winner in the past week as it breaks to the highest levels ever. It’s up six days straight and is up 0.9% today on a softening US dollar.
Given the all time highs, there isn’t much in the way of technical resistance.
Here is a compelling argument for more gold buying: Retail isn’t involved yet. If you look at ETF assets or gold miners, it’s clearly a hated sector.
Moreover, a larger crack in the US dollar on Fed easing would be what super-charges gold.