Gold fell $30 on Friday to the lowest this month. The losses continued in US trading today as it slipped to $1375 but rebounded in the past few hours, touching $1386. On the day, gold is now $3 higher.
The catalyst for gains came from China where officials approved two gold-backed ETFs, which will allow easier access to gold for China’s growing investor class.
Gold has been moving sideways since the big drop in mid-April. I’m bearish because the metal has been unable to rally on days when the dollar falls. Indications of longer Fed QE have also failed to spur significant gold rebounds.
