Gold rebounds from $1400

Gold rebounds from $1400

Consolidation continues to be the story in gold but economic jitters have lifted it towards the top of the range over the past month.

Gold is up $15.45 to $1421.60 today. All the gains have come in US trading after touching $1400 in early European trade.

The market is trying to weigh whether we're seeing 'insurance' cuts here and there from central banks or whether this is the start of a global easing cycle the will pin bonds to the floor (and below) for the foreseeable future.

One bit of news that stands out for me today is railroad operator CSX highlighting an economic slowdown and a 'puzzling' economy while cutting revenue guidance. Oftentimes companies -- especially transport companies -- have a good idea of what's coming.

There's also a growing fear that the next shoe to drop on US-China trade will be negative.

For me the trade here is to hold tight until a break of the bull flag on the chart. These often resolve to the upside but (as you can see with Bitcoin), that's not always the case.