Gold slide continues despite dash for safety in the bond market
Gold has turned lower with prices now down $7 to $1257 after a $27 fall on Tuesday.
It’s a bit of a surprise to see gold falling as yields continue to plunge. The 10-year T-note yield is now down 7 basis points to 2.45% as support gives way.
The driver for gold today is the rising US dollar and a drop in ETF holdings. There is also very little near-term support on the gold chart. I’m keeping an eye on oversold indicators but the daily RSI is still okay and it’s normal for something to flash oversold/bought indicators in a breakout.