Prices slipped from the high of $1364 to a daily low of $1339.68 levels after the all important US non-farm payrolls data and wage growth figures data showed the US economy is on fire… The question now being raised is “why isn’t the Fed hiking rates” rather than “when and if the Fed will hike rates”.
- Gold’s sharp retreat from today indicates the rebound from daily rising at July end topped out at $1367.15 (Aug 2 high) and a short-term congestion above the rising could be seen if today’s closing is above the support of $1335.
- If the rising is breached on daily closing basis, the psychological support at $1300 could be put to test.
- On the higher side, only a daily closing above $1380 (38.2% of 2011 high-2015 low) would suggest prices have resumed the rising trend from Dec lows.
Gold does well in US election years compared to Silver & is usually cheered by Democrat victory, while stocks love Republicans. This is generalized observation as there are many other things going on simultaneously.
Check the latest post on Gold's performance during election years here -
Also included link to today's London open show where we discuss the topic