As the S&P 500 wavers, gold futures remain steady, currently trading near the upper end of two-month trading range. Technically, this sideways motion, particularly considering the lack of volume, is neither bullish nor bearish…(it’s sideways). However, do pay attention to bank price target revisions, as a few have revised upward. Also, consider the longer term effect of Fed stimulus on the dollar. Right now, banks are flush with deposits, many investors converting to cash. In the more alarmist range of financial media, there’s a popular inflation vs deflation meme that’s going around. If anything, it highlights uncertainty. Markets hate uncertainty. But gold seems to benefit from it.
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