The problem with gold is that it’s a good asset to hold when things are a little bit bad in the markets. But when things get really bad, it gets sucked into the financial maelstrom. That’s what happened at the start of Covid and that’s what’s happening now (to a lesser extent). It was trading as high as $2,477 in the wake of the FOMC decision but has quickly fallen to $2,435 in the last 20 minutes.
gold 10 minutes
Another problem for gold traders is the Middle East. Reports continue to circulate of an attack on Israel. There should be some comfort in Iran’s level of readiness to predict such a move, which implies that it will be more theatrical than retaliatory.
However, there is always the possibility that either side could miscalculate, and then we could face a real conflict.
But now the fear is starting to subside somewhat.
There is another issue on the technical side. It is too early to tell but it looks like we could see a double top at $2475.
Gold daily