Gold looking constructiveThe overnight price move in gold is certainly constructive from a bullish perspective. It has now recovered the losses incurred over Friday and into Monday, pulling further away from the $2,640 danger level, and now closing in on $2,670. The fact that it is doing this despite the strength of the US dollar, and rising bond yields, is testament to gold’s robustness, as well as an acknowledgement of its status as refuge and safe haven in times of economic, and political, uncertainty. Of course, all on this could get wiped away, by, let’s say, an unexpectedly strong Non-Farm Payroll number tomorrow. That would likely lead to another reduction in Fed rate cut expectations, resulting in further gains in bond yields and a jump in the US dollar. It goes without saying that a weak payroll number could see the opposite market reaction. But as long as gold doesn’t break below $2,640 significantly, then it has a fair chance of pushing higher, particularly given the uncertainty that comes with the incoming Trump administration
