Gold is still down 3.6% in June against the dollar
And even when you look at the technical picture, it's not looking pretty. While I would argue that the dollar index is the more important chart to look at today, you can't ignore the fact that there isn't any key support levels nearby for gold at current levels.
This feels more like a speed bump rather than a road block, as sellers will surely still eye a move towards the December low @ $1,236.55.
The dollar is weaker across the board today as risk sentiment shifts more favourably in the euro's favour - and with uncertainty removed we're seeing stocks rally as well. It's a funny day in the market where gold is also seen as performing better against the dollar in a risk-on situation. But it is what it is.
I wouldn't owe it to the fact that gold has gained, but more so that the dollar has lost some ground. And that is why I'm not convinced of a brighter near-term outlook for gold unless we see a massive breakdown in the dollar's recent momentum.
The 3.6% decline in bullion this month is the worst since November 2016, where the precious metal fell by more than 8% against the dollar that month.
