If something can’t fall on bad news, then it can’t fall at all

From blog.hycmlab.com

This trading saying is one that gets thrown around and it has been illustrated recently in the gold market. On April 08 it was flagged how attractive gold was looking to buy. Giles Coghlan, Chief Currency Analyst, wrote this “US 10 year yields surging, and the USD, but XAUUSD holds firm. If something can’t sell off on bad news then it can’t sell off at all. Gold longs look VERY attractive now” on Twitter. Now the point of this post is to show you what can happen in a market when there is a clear investor bias. Usually, when yields are surging and the USD is surging then gold would normally be falling. Now ... (full story)