Gold $27 higher on the day
Gold has climbed above Friday's high in a nice turnaround from yesterday's slump. It's up $27 to $1854 with the latest leg coming on a broader slide in the US dollar.
Giles made a good case for precious metals earlier, noting:
- Slowing ETF sales
- Seasonal tailwinds
- The potential for something dovish from the Fed
The last point is critical in the short term but Powell has been reliably dovish since the start of the pandemic. I don't think he needs to offer anything new to keep the bid alive but he needs to reiterate that rates will stay low for the long term and that easing is on the table.
