Why isn't Gold Rallying?
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(Kitco News) - When you look at markets you find many interesting puzzles, the latest is with Gold. The U.S. Dollar is getting crippled and yet Gold has rallied, but nowhere near how far the dollar has fallen. As a trader or investor, you must ask yourself, why?
There is always a reason why, I like gold here and it has really been trading to plan. Held $1,200 when everyone was selling and how has broken above $1,269 pushing $1,280. We will cautiously watch gold as it tries to push to $1,300, but will keep tight reigns while we try and figure out why it’s not stronger.
Bitcoin has rallied back from the lows and may be taking some of the shine off gold. As always the markets will sort this out. As an investor I’m always willing to add to my physical position, as a trader I will be very careful here looking for clarity.