Gold intermarket: catches a closing bid with strong VIX within risk averse sentiment

Ross J Burland FXStreet

Gold has caught a bid in risk off markets while DXY has been falling back from recent highs on the 96 handle, marking a low at 95.25.

USD/JPY suffered supply down from 100.41 to 100.24 lows so far ahead of potential volatility (VIX, 14.43 at time of writing and spiking from 12.29) that could about from the first of the evening debates between Democratic presidential candidate Hillary Clinton and her Republican rival Donald Trump. With the Fed also holding last week and a less aggressive BoJ, gold's upside could be supported as DXY remains on the backfoot and a break of 95 could lead to Gold back to the $1,350's again, underpinned by falling US30yt currently at 2.23 and down from 2.49 and pre FOMC levels.

U.S. elections: A Trump win would strengthen the Yen - Nomura

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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