Gold shows some life in bounce off the late-2019 lows
Gold has trimmed losses to $13 and $1517 from as low as $1451.
There is so much to like about gold in the longer term right now. Global interest rates are pinned to zero and likely to stay there for many months. QE programs are going to grow everywhere and government bond yield nothing while the risk-reward in corporate bonds is awful.
Mostly, government deficits are going to explode.
One risk in gold is sovereign liquidation to defend currency pegs or raise funds. I think that's a real risk but the demand is also real and will stay that way because we're not going to be able to cope with the deficits and bailouts.
The bounce today came right at simple support at the late-2019 lows at $1450. I think gold is going to remain vulnerable in these liquidation events but it's encouraging that there are buyers out there. A close higher today would be a nice signal but we need to get all the way back above $1600 to really spark momentum.