- 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 :
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