Gold has recovered more than 61.8% of yesterday’s drop, surpassing a key technical hurdle.
Gold three-day chart
The US dollar is broadly weaker and that’s lending a helping hand to gold. The stalemate in Washington is adding to the bid as the market begins to lose faith in the government. As we saw yesterday, that sentiment can be easily swayed. The real test is the debt ceiling but with the attitude on Capitol Hill growing more poisonous by the moment, it’s headed towards a nasty, potentially disruptive showdown.
The broader takeaway is that once Washington is settled, it will be time to sell gold in a big way.
