There are no major US economic data released this week. Israel, its new developments and significant change in geopolitical shift will dictate price of gold, silver, and crude oil.
Gold's rally was safe haven buying but U.S. treasuries also rallied (prices rose, yields fell) as they too are a safe haven. The stock market's next move is open to interpretation.
Gold remains ridiculously undervalued at 1946. This is -48% below the Dollar debasement value of 3725. Given historical price-to-value reversion, 3725 shall eventually be reached.
Sentiment, my friends, is what drives gold up and down. Not the Fed easing cycle, inflation, manipulation, or the myriad of other reasons the media gives as to what drives gold.
In the gold market, the 18-day moving average of closes is the point of resistance. I think you are at the culmination of a leg of short covering after a huge break in the market.
