With the dollar strengthening gold has been dragged bac. However, we see this as a near term unwind within a bigger medium term positive outlook and will serve to be a chance to buy. How the market reacts in the support band around $1902/$1926 will be key now.
A dollar rally is dragging on gold. The concern for the gold bulls will be just how far a dollar rebound can go and whether it significantly damages the technical outlook on gold in the process.
We believe that the negative correlation between the dollar and gold is still a key factor. The 21 day Correlation calculation unwound in late August as markets consolidated, however remains negative. Now in the past week, we have seen the moves on gold and the dollar re-emerging with a negative relationship. Once more today, the dollar is higher and gold lower.
The dollar rebound could though have further to go, with key