Just a heads up. Looking at a basic 5 year chart it looks like 1200 on the downside and 1400 on the upside are important levels for gold. We had a test of 1200 pre-brexit. Maybe test 1400 sometime this week and pullback? After 1400 its 1600.
The timing is right for gold, the brief dead cat bounce in world markets post brexit seems to be over now. Swiss bonds are negative out past 50 years, money in japenese long term bonds has gone up astonishingly in the last 8 weeks. This could be golds fundamental moment that breaks the technical glass ceiling. I'm not sure how much more money is going to come from outside to keep the dxy up, with the yield on bonds and the demonstrably shaky equity market (not to mention private debt markets). Gated withdrawls in UK property funds and Italian banks about to give (just saw short selling banned on one as it's so obviously tanking). Central banks pump liquidity gold goes up, they don't and the market wobbles even more. Chinese finger trap there. *edit* GSR indicates private move into metal that might not be reflected fully in gold markets yet, given the size of tge markets relative to each other it's not surprising that silver would be a leading indicator. A return to 70:1 much less 77:1 puts gold about $1420usd. This could be the start of the big one.
Maybe. Non-farm payrolls is this friday. I guess another bad report could see it spike through 1400 if its in the region.
A bad one would but I don't think even a beat will have that much downside for gold in this enviroment, we're way past a fes rste hike being based on a single good number especially after last time, in fact a beat if anything would just likely make people start to question the statistical collection and coalation. A bad number as you point out though could be huge for gold. Especially if the mainstream financial media start talking about easing in the US even just likely forward guidance (or being maybe possibly on the cards). I just don't see much that could put much downside pressure on gold although it could stabilize around $1350. I don't think there's a natural downside at these prices being a good fit for break even for a lot of producers.
