18th May 2016

Gold pushed higher on Tuesday, but reading the market was quite difficult, as there were counterbalancing influences at work. On the one hand, gold was supported by falling US equity markets, with the Dow shedding about 180 points and giving up all of Monday’s gains. (The Dow has now fluctuated by almost 200 points in each of the last three trading sessions). However, we were surprised that gold held up as well as it did given increasing talk of rate increases, with one Fed official saying that the central bank could move 2 to 3 times this year, something that most investors are not factoring in at all. Despite the hawkish rhetoric, the dollar did not do much, ending virtually unchanged against major currencies, although it did gain ground against the yen.  

News article attributed to www.bulliondesk.com