This was a big week for gold as we saw the $1600 level tested and there looks to be real follow through at the time of writing. Its been a real interesting few months for us gold traders. The traditional inverse relationship: strong USD = weak gold and weak USD = strong gold, well, this just hasn’t been playing out the traditional way. The USD has been in a steady uptrend since 2018, while gold has also been climbing since Sept 2018. I believe the reasoning here is that there has been so many factors contributing to global, and particularly economic uncertainty that gold’s traditional safe-haven status has dominated the markets’ sentiment. Trade wars, Brexit, US political uncertainty, Europe’s political changes…and now coronavirus – its not surprising that gold is rallying into 2020 and I don’t see the uptrend any time soon. From a trading perspective, have patience and wait for pullbacks to identify areas of demand.
