It's inflation week in the United States and that means gold will be a major focus. So far, it's off to a bad start as the gold market digests the strong US jobs report from Friday. It's down $16 to $1992 and has broken through the key psychological $2000 barrier.
In the bigger picture, the level to watch is $2070. It's held in two major challenges on the long term chart. The old adage is that there's no such thing as a triple-top; it's a double top that didn't work and is doomed to failure.
I don't believe that but for the gold market, the key thing right now is that Russia and China appear to be accumulating reserves in a diversification away from US dollars. That could be a major tailwind and it will get an extra push if this week's US CPI and PPI numbers are soft.
