Gold steady in bond chaos
It’s the best of times for gold; the worst of times for dollars. Led by long-dated JGBs, global government bond markets are wobbling. We can see where this is going…
This week saw moderately firmer prices for gold and silver following a near-four-week consolidation. In European trade this morning, gold was $3328, up $27 from last Friday’s close. And silver was $33.20, up 93 cents. Futures volumes on Comex remained low-to-moderate, though picking up slightly as the week progressed.
It is worth bearing in mind that measured by open interest, both contracts are still in oversold territory, a technical positive factor limiting the ability of the swaps to shake out longs:
Traders and stackers alike will be wondering whether the consolidation timed from 22 April is over. While gold’s bullish outlook is undoubted, a look at the technical chart is not clear.
