Gold continues to underperform SPX

OANDA:XAUUSD   Gold Spot / U.S. Dollar
There seems to be no respite in the bearish Gold trend, with prices extending the July bear trend.

Falling momentum studies and bearish longer term charts suggest further downside risks into early 2017.

From a cross asset perspective, Gold - and Precious Metals in general - continue to underperform US equities, suggesting asset managers will maintain a long SPX , short Gold (Precious Metals) allocation.

This could help keep US stocks buoyant in the coming weeks, but other commodities classes, eg Energy, Base Metals and, to an extend, Agriculture, could provide a counterweight.