Gold buyers eye a break of $1,350 on more dovish central bank rhetoric
Gold is retesting the year's highs again today
With Draghi committing to dovish remarks earlier today, it continues to underscore the ongoing theme of global central banks growing increasingly dovish this year. And that is no doubt something that will allow gold to charm investors even more as the chorus grows louder.
The next in-line will be the Fed tomorrow. Right now, buyers are retesting the year's highs again but falling short of testing the $1,350 handle. But a dovish Fed tomorrow will be exactly the recipe that buyers need to send gold searching for an extension higher following the gains seen since the end of May.
Add to the fact that global trade tensions aren't going away any time soon, it's putting gold back on the map over the past few months and there's certainly a strong case for further gains if the Fed plays along. Let's see what Powell & co. will serve up tomorrow.