7th May 2016

Ever since we wrote about the gold market late last week just before we left to attend the 2016 Mint Directors Conference in Bangkok, the precious metal experienced stepped-up volatility. It seems that the precious metal is taking its cue very much from both the dollar and global equity markets, each of which seems to be pulling it in different directions. In effect, the sloppier tone evident in global equities (on growing macro concerns) is acting as a bullish offset to the bearish pressure generated by a stronger dollar, itself having recovered this past week, particularly against the yen and emerging market currencies. Its rebound is attributable to short covering, coupled with nervousness about the Federal Reserve’s impending rate decision scheduled for next month. 

News article attributed to www.bulliondesk.com