Personally, I do not think so. I would love to believe that gold is currently experiencing a moderate pull-back. A bearish move is more likely to be confirmed if GLD falls below $175 (if you are risk adverse) and $170 (if you are less risk adverse).
If DXY goes up, GLD tends to go down. Is DXY going up? Currently, DXY appears to be on a down-trend and no clear upward reversal has been observed.
What about US yield? If US10 year rate goes up, GLD tends to go down. As of today, there is no clear upward reversal / rebound in the US10 year rate.
Latest Developments: Gold edged higher on Tuesday, albeit lacked any strong follow-through and held well within a four-day-old trading range.
The precious metal stalled the previous day’s sharp intraday retracement slide from multi-day tops and managed to find some support near the $1924 region. The emergence of some fresh selling around the US dollar was seen as one of the key factors that benefitted the dollar-denominated commodity.
However, a combination of factors held investors from placing any aggressive bullish bets and kept a lid on any meaningful positive move. The global risk sentiment remained well supported by the latest optimism over a potential vaccine and treatment for the highly contagious coronavirus disease.
Disclaimer: This post is not an investment advice or endorsement. Please refer to the general disclaimer of this blog.