Gold is at the lows of the day in a worsening selloff that has it down $14 to $2372. It was trading higher on the day until about an hour ago when the broader risk trade began to deteriorate.
Zooming out, gold’s run above $2450 increasingly looks like a failure as a series of lower highs has followed. It’s also increasingly clear that gold is a risk-sensitive trade at these levels. Today’s backdrop certainly hasn’t helped as a 1% rally in the S&P 500 has been erased.
However the mood could turn after the wave of tech earnings this week removes a source of angst.
This article was written by Adam Button at www.forexlive.com.
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