Gold staged a solid rebound in US trade, with traders pointing to USD weakness

Chris Weston
Chris Weston IG Markets

Gold staged a solid rebound in US trade, with traders pointing to USD weakness. The 30-day correlation is still fairly low at 44%, someway below the 73% correlation we saw back in late October, however as we saw USD weakness overnight gold started moving higher. The downtrend drawn from the October 29 high has now been broken, while we've also seen a higher high, with the metal breaking above the recent consolidation. The fact US bond yields fell also supported price action.

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Hock Meng Tay

Probably a key barometer to watch as gold prices move in reaction to the upcoming Dec 17-18 US Fed meetings next week.

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