Gold's left the station
It all really kicked off for Gold when the Fed starting easing in June and took Gold through $1350. At the time I was leading an FX trading course in Dubai and we were looking at the Gold chart as a learning point for how central bank policy impacts FX prices. The learning point was a dovish fed will decide whether Gold breaks out of 1350 rather than any purely technical reason. Right on cue, the Fed was dovish and Gold broke out. It was a good lesson to see.
Well, Gold has moved on from then with the Fed's dovish move being followed by central banks around the world. The RBA has cut rates since, the ECB is due to cut in September, people are seeing more of a chance for the BOE to cut rates, the RBNZ hit the panic button last week cutting by 50bps and that was followed on the day by India, Thailand, the Philippines and Serbia all cutting rates. President Trump is constantly sending out reminders to the Fed, 'guys why aren't you in a currency war? Everyone else is!'. So, all of this has sent Gold rocketing. As global yields fall where is value? Gold once again is there with welcome arms.
Where buyers will rejoin Gold's move
So, if you missed Gold's breakout where can you join? Here a few locations on the Daily and 1 hour Gold chart to rejoin Gold longs. Remember, the driver for Gold now is clear - low yileds, falling interest rates. If that sentiment reverses then the pressure will be released for Gold's rise.
Daily
Hourly
