Optimism is in the air
Japan ended a nationwide state of emergency today, Australian kids went back to class and Italy's Lombardi region reported zero deaths today -- all better pandemic signs.
That tone is evident throughout markets and it's no different in gold, which is down $7 to $1728. It declined in Tokyo trade and hit $1725 before flattening out. The LME is closed so pricing may be thin.
On the daily chart, today's dip erases Friday's gain and marks another round of consolidation below $1750.
One spot under the microscope is Hong Kong as China changes the governing regime and the US threatens sanctions.
In the bigger picture, the story is stimulus and the endless money printing from the Fed and other central banks to go along with unprecedented deficits. It's a tough regime to argue against and if the global economy improves it's probably positive for gold because it's likely to bring back central bank and sovereign buying as some visibility returns.
Technically, Thursday's low of $1717 followed by $1700 are support.
