After a 7-day run-up in gold has taken a short and sudden breather. There are good reasons why gold has underperformed this week, the first being the bid-up in the US Dollar by Japanese traders (who were really just exiting their own currency), with the USD simply the strongest alternative.
So, while coronavirus fears had gold rising in general terms, the USD was also rising, which theoretically would put a damper on precious metals. And it has. As they say, ignore the most basic laws at your peril. In the current environment, you’d expect any correction by gold to be short-lived; today’s featured article lays out the technical groundwork and reveals one analyst’s targets.
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