majicktrader

Has Gold run it's course?

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
Many commentators are speculating that Gold will rise during 2021 against a weaker USD. That certainly is one prospect. Another prospect is that as US 10 Year Treasury Yields rise, Gold will become a less attractive and we may see demand drop. US 10 Year Yields have already crept up to near 1%, before fading back to around 0.90%. Certainly the higher yields are keeping gold below $1900. As covid and winter bites into the US economy and if Pelosi and McConnell fail to get agreement, the next 4-6 weeks could see the Fed take action -in which case we may see Gold rally. However, the longer term picture is for a more "normal" 2021 where fixed income becomes a genuine alternative to Gold.

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