Joined Sep 2017
Status: Still a total mystery
Good man, things are rolling I am somewhat disappointed in the FED... but hey, still time, nothing sure as of yet..I would still bet on the stronger USD for the summer.... which would result (all things being equal somewhat) in the slow decline in XAU But hey, if you prop trade and BUT it.... without leverage in particular... what's the worst it can happen? That you are "stuck" with GOLD? It's like the perfect hedge, if you can afford it
I would still bet on the stronger USD for the summer.... which would result (all things being equal somewhat) in the slow decline in XAU
I agree that we may see some appreciation in the USD, which should be accompanied by a decline in gold. Rate speculation is overdone and we will see traders pull back from the 100 basis points worth of rate cuts that have been priced in already. If that happens, gold would have to depreciate on the USD inverse relationship alone.
My hesitation is with all the global uncertainty, especially Brexit. With everything else that's been taking center stage, it seems like the new candidates are gearing up for a hard Brexit. If that happens, it would support the price of gold. We could see flight to quality in the USD and gold.