May 13th, 2021
Some people think that Gold is a hedge against inflation, it may well have been in times past. However, in 2021 Gold suffers when US interest rates go higher. This is what happens with higher inflation, along with its close friend, a stronger Dollar. Both of these things came into play yesterday.
However, despite the bad news, gold has found support in the 1812 to 1814 area as we thought, following its break down below 1820. I would expect to find more support at 1806 and 1798 the previous break out point, that sparked the non-farm payrolls rally last Friday.
Immediate resistance is in the 1820 to 1822 area. With more congestion found at 1826 yesterdays pivot. A break back above here would target 1832.
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