Gold's headwinds are the strong US dollar and interest rates. When you can lock in a 4 to 5% interest rate for 5 years, you've got to ask yourself, why do I need to own gold?
A triple whammy in the form sharp rise in US bond yield, rise in the US dollar Index and fall in US stock markets caused the selloff in gold, silver, copper and energies yesterday.
Fitch has downgraded the US government’s top credit rating. Fitch downgraded the United States to AA+ from AAA citing fiscal deterioration over the next three years.
The gold market is fluctuating against the 18-day average of closes with a downside bias. You're fighting here, but not going anywhere. Momentum is down.
Our biggest hope is the so-called triple top for gold (Aug. 2020, Mar. 2022, May 2023 at $2,089, $2,078, and $2,085) is broken. Is four times the charm? Meanwhile, $1,940/$1,950 needs to continue to hold.
