Is Gold Losing its Luster?


With gold unable to find direction, I suspect that a rising dollar and lack of geopolitical headlines are containing the price. The safe haven trade is on pause unless we see a punch through 1568.8 and then a spark up to 1600 is likely. What is interesting is the divergence between declining interest rates and gold futures. Usually we see these two markets track each other unless the market is pricing in a deflationary environment and this could be the case with news of the cornonavirus spreading. Now something to keep an eye on is if the S&P breaks below 3300, calls for a top in the market might drive investors back into gold.