Gold breaks the important USD 1200 support …

  • Gold Strongly negatively correlated to USD ( See 2d chart below ).
  • Gold strongly negatively correlated to US (and global) long term yields.
  • Inflation risks do not play any role … for the time being.
USD 1200 support gives away and if prices does not go back quickly above this level/stabilizes at current level (USD1190) more pressure on the downside to USD 1150 – 1100 range  might be expected.

Gold crossing the USD 1200 support :

gold-crosses-1200

Strong negative correlation between Gold price and USD especially since US election : Today EUR/USD at 1,0550 and USD/JPY at 112,40 .. USD INDEX AT MULTI YEAR HIGH

gold-eurusd-correlation