Listen to the latest market mood for the XAUUSD pair.
Expect gold buyers as pulls back on the daily chart. Firstly, very low-interest rates globally and US rate hikes off the cards for the next two years weaken the USD which boosts gold. Secondly, huge amounts of money are being printed by central banks around the world via their QE programs. This all devalues currencies. Thirdly, gold taking out all-time highs is a significant technical break. Finally, the fact that real yields are very low and have been negative. This means that when you take yields (10 years) and minus the inflation the yields have been negative. This boosts gold’s appeal over cash.
We expect this trade to play out between now and the next 4-6 weeks.
Trade Risks: If we see a sudden return to a normal economy that will invalidate this outlook.