We had outsized volatility in gold back on Monday this week.
The early move was a sharp move lower and then for the balance of the session a retrace (not all the way) back up.
Since Monday gold has hashed around largely sideways:
A snippet comment from TD commodities analysis, seeing an ongoing rise in real yields and increasing expectations of a Federal Reserve tapering:
- Gold will be under pressure in the next couple of months
- The market’s expectation is that economic data will continue to recover in a very firm clip reminiscent of the employment data, but Delta variant concerns could certainly prevent the Fed from wanting to taper sooner rather than later