Gold is fascinating at the moment. It’s been unshakable for months. Risk-off, fantastic. Risk-on, no problem, central banks are cutting rates anyway. It was a bit of a slow burn in July but June and August have been knockout months. The last week though has seen it lose a little momentum, surprising considering on Wednesday everyone became convinced we Bare heading for a recession, which only lifted gold a little.
At these extended levels and in an area of historical significance – around $1,520-1,560 – perhaps it’s not surprising that we’re seeing some profit taking. It had rallied around 20% since late May, that’s some rise. If it is heading for correction – and that’s obviously not a given – then it’s a question of how much. I’m not convinced it will be too great in this environment, but $1,500 looks to be crumbling a little this morning, which makes $1,480 key. A move below here draws attention to the $1,440-1,450 area we peaked around in July.
At these extended levels and in an area of historical significance – around $1,520-1,560 – perhaps it’s not surprising that we’re seeing some profit taking. It had rallied around 20% since late May, that’s some rise. If it is heading for correction – and that’s obviously not a given – then it’s a question of how much. I’m not convinced it will be too great in this environment, but $1,500 looks to be crumbling a little this morning, which makes $1,480 key. A move below here draws attention to the $1,440-1,450 area we peaked around in July.
