Gold falls out of favour
We're in the post-pandemic, post-data world now; where the only thing that matters is Fed printing and massive deficits. Ultimately, that's a dream scenario for gold but at the moment there's no need for safety because equities go up every day, particularly in Europe where they're soaring.
That's taken the shine off gold and it's lower for the second day. The bulk of the declines came after the ADP report but given that nothing else is moving on the data, I expect that's more of a coincidence.
Over the past few months, there have been periods of heavy gold selling into the start of US trading so I suspect that's what is happening again. In any case, the chart shows a nice line of support from mid-April up to about $1700 currently. In the bigger picture, it looks like god is still stuck in a range. I'm a bull but worry that if the Fed comes out and says 'it's not as bad as we thought' and hints at winding down programs, then gold is vulnerable.
