Gold hangs above USD 1510 despite a strong risk tone
|- Gold is holding at high levels despite equities pushing higher.
- Stocks and USD are both higher which normally puts pressure on the yellow metal.
Interestingly today gold is only 0.15% lower today as stocks push higher and the dollar index trades 0.15% to the good.
Historically gold struggles much more when stocks are this bullish and the dollar remains strong.
Something has to give and maybe we are setting up for some fireworks in the US session later on.
Last week we got the latest from the Fed. Some analysts have branded the 0.25 basis point cut as a "hawkish cut".
There has also been some movement on the futures curve as analysts have started to push back calls for another rate cut from the Fed.
Data in the US also improved as the jobs reports (NFP) surprised to the upside and last months number was also revised higher.
Crucially GDP figures for Q3 also beat expectations of 1.6% and printed at 1.9% which also please USD bulls.
This afternoon when stocks open in the US, analysts will be watching precious metals carefully as macro positioning may change.
The MACD indicator looks like it is also on the verge of crossing over to the upside but the chart formation is looking "toppy" as after three tries the market failed to break highs.
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