10th May 2017

 Gold dropped to an eightweek low on Tuesday, as fund buying continues to retreat given the paucity of bullish headlines, coupled with the fact that the charts look pretty miserable, with that of palladium’s being the sole exception. Also hurting gold so far in May, has been the fact that the dollar continues to push higher on the back of rising US bond yields, now at five-week highs. The greenback did not do as much against the Euro or sterling on Tuesday, but it did advance to an eight-week high against the yen and continues to charge higher against a general basket of currencies. The Japanese currency was under pressure on account of the fact that the South Korean elections have brought in a new president who favors talks with the North, complicating the standoff somewhat further.