Why is the gold market screaming there won’t be a taper?
Today’s ADP data pointed to a better jobs market and the ISM data, though softer, wasn’t a clear signal. In any case, gold is up $25 to $1248 after falling to a 5-month low of $1211 earlier in the day.
Gold, no doubt, is being assisted by broad US dollar weakness in the past hour the strength of the move is bizarre given the risks surrounding the Beige Book later today. Flows are a likely suspect but chatter is light.
Can’t make sense of the fundamentals so let’s look at the technicals. Gold may have found some support ahead of the July 5 low of $1208 but that’s no a level that screams ‘buy’, at least to these eyes.
Even with the gains, it’s interesting that gold has failed to breach Monday’s high of $1252. Keep an eye on that level and the cluster of resistance that stretches to $1258.
Gold daily
