GOLD SHINING AGAIN?
Gold prices have been clawing higher throughout October, even though the fundamental backdrop remains difficult thanks to the reality that FOMC continues to offer clear signals that tapering is arriving soon. With the November Fed meeting arriving next week, the recent bullish impulse higher may soon face a considerable test.
Nevertheless, thanks in part to a weaker US Dollar and long-end US Treasury yields coming down in the face of rising short-term inflation expectations, gold prices have been able to move back above the 1800 level as the final days of trading in October near. Despite the challenging fundamental environment, it may soon be the case that the technical picture offers a more promising outlook in the near-term for gold prices.
