Gold to regain it's shine on an easing Fed

Author: Giles Coghlan | Category: News

Via Bloomberg

First of all apologies for missing my usual morning post yesterday am.  I was hit by technological gremlins and it took support a few hours to sort it out. There is nothing more frustrating than being locked out of where you want to go. Annoyingly, yesterday's post was also deleted from the system too. However, normal service resumes today. 

Via Bloomberg

Gold's recent gains could move into a large movement if the advance gains momentum to draw speculators in from off the sidelines.   Bloomberg highlight the streetTRACKS Gold Trust Shares Outstanding Index , which is a proxy for speculative positions. The Index has recently diverged from Gold's rally as traders have been hanging back after false breakouts in 2016 and 2018.  

Federal Resevre

The recent rise in Gold has been the fall in the USD. This has been due to Fed Chairman's Powell's shift towards rate cuts. If the momentum picks up that easier policy is coming and rates cuts are ahead then speculators may be drawn off the sidelines to push Gold even higher. The drop in US inflation data yesterday is only going to add to the pressure on the Fed to cut interest rates. You can see the full report here. Gold is a chart to watch for a potential intraday buy from support for today.

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