Instead of seeing a rally amid this risk-off tone, gold is struggling to hold the $1,800 an ounce level.
“10yr yields are being pressured to 1.22%, EM/FX is being hit, the VIX is creeping up on 20, and U.S.
Yet, in light of all these factors, gold’s rally is nowhere to be seen.
Based on Shiels’ analysis, gold should be around the $1,900 an ounce level.
dollar, which is still strong enough to weigh on gold, with markets projecting more greenback strength once the Federal Reserve begins to taper.
While that was worth -$300 in gold prices and unlikely to repeat, as with US$, the path of least resistance is higher, not lower.