Gold took a tumble in the past 15 minutes as it extends its post-payrolls slump. It’s not entirely clear what’s behind the selling with Fed funds futures pricing for the June meeting stuck at 29% pre-and-post NFP. The dollar is also broadly flat and commodities are generally higher.
This one might be technically-related as offers at $1983 and nearby stopped gold in its tracks three times in the past 24 hours, even as the rest of the market priced in a Fed pause (or skip).
On the daily chart, this decline wipes out yesterday’s gain and leaves it within range of the 10-week low of $1932 set earlier this week.
However there’s something of a trendline from the November lows in place and if the Fed ultimately holds, the market will soon feel more comfortable pricing in cuts. When those do come, there will be a stampede into gold.
gold daily