Is There a Bottom Yet?
Gold has had a bit of a move upwards in the past couple days, perhaps the recent slide is finished.
|Daily Gold Chart|
Recent announcements regarding interest rate rises and government expenditures in the US are causing some degree of uncertainty leading to a demand for Gold.
“Bets on a steeper Fed rate hike path after the U.S. presidential election have undermined demand for anti-fiat and non-interest-bearing assets,” including gold, said Ilya Spivak, currency analyst with Daily FX. “A lull in top-tier news flow may allow for a corrective retracement in the week ahead, but prices will probably remain highly sensitive to headline risk as the [President-elect Donald] Trump cabinet takes shape.”
Here is a chart of the US Dollar Index showing some retrace as a result of the recent policies in the US. At this point traders are uncertain as to when interest rates may rise and there is some concern as to the budget proposals of the new President of the US.
|US Dollar Index daily chart|