XAUUSD - nirvana-like conditions but can it last?
Given the moves in the USD and US real rates - Its probably no surprise that XAUUSD is also testing the top of its channel and its 50-day MA – this is similar to EURUSD, but price has progressed a little further. This has been gold’s time to shine as we’ve seen market-based measures of inflation expectation ('breakeven' rates) moving higher, while real rates have fallen sharply – with a weaker USD these are nirvana-like conditions for the yellow metal – the question obviously is whether it can last?
I am not sure the Fed will be overly happy with the easing of financial conditions – they may push back but let’s see next week’s US CPI print – it seems key.
These are levels many swing traders will lean against but it will require real rates (TIPS) to resume its primary trend higher
I am not sure the Fed will be overly happy with the easing of financial conditions – they may push back but let’s see next week’s US CPI print – it seems key.
These are levels many swing traders will lean against but it will require real rates (TIPS) to resume its primary trend higher
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