Gold can’t be pinned down
There are two lines of thinking on the easy-money trade (low rates & high government spending):
- Bet on it now because Democrats are way ahead in the polls
- Wait and see what the election brings
I lean to option #2 but maybe I’m being overly cautious. In the past two days, the market has piled into option #1.
We’re seeing it again today with gold climbing alongside the commodity currencies, along with a small slump in the US dollar overall. The yen crosses are particularly compelling from a technical perspective but gold is also notable, because it’s rangebound but nearing some technical resistance.