Not an exciting week in Gold as it continues to grind lower very steadily, which is worrisome because there has yet to be panic selling; however, like the song from Sgt. Pepper's Lonely Hearts Club Band, Gold's friend Silver is holding ground, and Platinum is threatening to break through its highest level since 2015. Overall, the U.S. Dollar failed to follow through lower over the past two sessions and is now gaining ground. Still, the most significant headwind remains the firm tick up in Treasury yields with a short-term upside move to 1.23% on the table. Since we are focused on Gold, we have a new edition of our free "Gold Trends Macro Book," updated with silver slides. This monthly updated booklet will provide you with all the quantitative analyses of the precious metal's markets. You can request yours here: Free Gold Trends Macro Book.
We will continue to reiterate that fresh weakness in the Dollar is a necessity for Gold amid this inflationary environment of rising Treasury yields and added fiscal spending. The U.S. Dollar correlation to Gold over the past 30 days has been at -0.81, meaning a strong inverse correlation right now.
Lastly, there are two catalysts that we see in the future that can lift Gold; China is coming back from the Lunar New Year and the expiration of March Silver options and futures. The first has proven to bring fresh buying