Big test for gold
Gold is focused on greater competition from fixed income rather than prospects for runaway deficits and dollar devaluation.
That's led to a sharp fall in gold. It's down $41 to $1908.
The first line of support on my chart is $1906, which is the December high. That's followed by $1900.
Our friends at Newsquawk also highlight the effect of real yields. They're moving higher today and they have tracked gold fairly well lately.
I think this is a buying opportunity for precious metals once it all shakes out. The dollar isn't going to turn around on this vote and the Fed is a long ways from hiking rates, no matter what the Senate does.
