Gold unchanged at $1934
The gold buyers continue to lurk close to $1900. The precious metal fell to a low of $1906 today but has quickly rebounded to $1934 and is now higher on the day.
There's a clear consolidation pattern in gold right now and I don't expect that to change until we get some clarity on:
- The path of the US dollar
- US fiscal stimulus (or not)
- The US election and likelihood of a divided congress
- General risk mood
I think those things are generally negative risks for gold and seasonals are poor until December so I'm more cautious on gold than I have been in months.
That said, price action is the ultimate decided and to turn a loss today into a gain even with Treasury yields lower and high risk aversion is impressive.
