This via UBS look ahead for the coming week, I've picked out some comments on gold and the euro
Gold
- momentum has shifted lower during the risk off period
- We would point out that it has stabilized (for now) - and if we are correct on a short-term risk bounce, it can recover.
- Both AUD and CAD momentum also show signs of a turn. The bottom line here is momentum is beginning to show signs of inflection this week.
EURUSD correlation with Gold is at 70%
- Gold is becoming an increasingly influential driver cross asset
- Gold is basing, and G10 equity prices are rallying broadly, now two weeks in a row
- Correlations strongly suggest pausing on a lower EURUSD theme for now
