Gold is significantly #winning today - well ahead of stocks and the USD after being closely synced with them since the lows last Friday pre-ramp. The question is why? We have an idea.
Gold is winning because the petrodollar flow is more than the Fed can handle. Now that they'ze started open repo operations, even more flow is being added to the system, hence the bids are coming in at forward physical price. Sept/Oct contracts are still flat to negative, implying a very tight physical market which cannot be manipulated for very long. The closer we get to futures expiry in this condition the more likely we will see a pop above $1650 as settlement worries loom driving shorts to cover at higher prices.
A weekly close over $1632 would be a massive technical breakout both of horizontal resistance from the July High and the 144 EMA. Volume being very low implies the market is ready to move.
Via Graham Jervis