In all the hullabaloo about Russia/Ukraine this month the general (albeit loose) correlation was to buy safe assets like bonds and gold on worries while selling stocks.
Now we’re seeing the flipside. Stocks are storming back and bond yields are beginning to move higher. Meanwhile gold isn’t stumbled Friday but took back about half of the losses before a renewed $5 loss today.
Prices just rose to $1300 but I like selling gold here on the expectation of a re-test of Friday’s low of $1292 (at the very least). The luster is off gold and the headlines in Ukraine aren’t scaring the market the way they used to. The market is fully expecting the Fed and Yellen to stay dovish so where is the catalyst for buying?
In the bigger picture, waiting on a break of the range remains the trade but I lean to the downside.
gold daily
