Intermarket Gold: DXY in the driving seat again
Gold has started to make fresh lows as the DXY picks up the pace on the upside yet again.
DXY has rallied onto the 96 handle from 95.49 to 96.10 while gold has dropped from $1,328 down to test the support of $1,310. Meanwhile, treasury yields have also started to stabilize at 2.28 on the 30 year while USD/JPY has rallied onto the 103 handle for the first time this month.
This current cycle is strength in greenback while Fed speakers have been perceived as being hawkish with their repeated mantra in respect to timings of a rate hike. Markets are fragile around the Fed and price action is volatile on every word spoken from Fed speakers who remain data dependent. this coming Friday will have the nonfarm payrolls and could be a game changer for the dollar on a worst than expected outcome and thus could see the gold price reverse course again.