Gold: What if the Fed doesn’t deliver?
Gold is trading back above $1,300/oz ahead of tomorrow’s FOMC meeting, while a weaker dollar and lower bond yields have offset the continued headwinds from rising stocks.
Head of Commodity Strategy
Summary: Today's Asian session saw USDCNY near the crucial 7.00 level, with the currency's positive correlation to gold now fading in light of the equities rout and the consequent safe haven bid for the yellow metal.
Given gold’s relative strong performance so far this week (+0.8%) despite the stronger dollar (+0.9%) it is likely that resistance at $1,240/oz could be challenged and broken very soon. Not least considering a potential nervous session ahead in stocks following disappointing results from Amazon and Alphabet yesterday.