Gold’s Sending Us a Clear “Buy” Signal

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  1. KoolAid says:

    The catalysts for a break above 1625 aren’t there in the near-term. The Fed is unlikely to expand it’s balance sheet before year-end as growth/jobs pick-up modestly (GDP growth >2% , Jobless claims 120k, Better Retail Sales nbrs) & inflation stays close to their 2% target in the second half. Further clarity over the ECB’s “QE” could initially lead to a partial unwind of the large EUR short & drive Gold higher but net/net it will likely weight on the EUR/USD (in the same weigh Fed QE would weigh on the USD) capping any serious Gold upside (correlation between Gold & EURUSD daily returns has been fairly strong over the last year).


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