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On Thursday, Super Mario Draghi, in his swan song at the head of the European Central Bank, lowered rates and added more quantitative easing. This action sent the The gold market is skyrocketing, pushing the yellow metal up nearly $ 30.00 before stabilizing at around $ 5.00 for the day.
The fear and panic of the collapse of gold have subsided for the time being and the $ 1,500 level forecast for December is maintained. The rally was both short and covers ignorance of the ECB's actions. The next step is the Fed and what it will do with the rates.
While the markets expect a reduction of 50 basis points; President Trump wants more, but the bond markets tell a different story. The hammering of bond futures which points to higher rates suggests that Thursday's gold recovery was as short as the hedge of those who had panicked amid the uncertainty of the global economy. Remember that the price dictates everything, as long as $ 1,500 will allow gold to go up, it's that simple.
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