Despite a rally back in the USD and the sudden recalibrated growth outlook for the world from Brexit, Commodities are picking up steam.
Gold has suffered a swift 5.5% move in 7 sessions on the back of the Fed and some signs of more active policy. The Dollar therefore has rallied 4% on the DXY and Gold therefore gets killed right?
Emerging markets are weaker as the Dollar hits EMFX while at the same time the Dollar not affecting commodities. A continuation of the delinking between the Dollar, markets, and downward commodity prices?
Brazil is a small part of the index in Emerging Markets relative to China or other Asian giants like India (EPI, quote) or Korea (EWY, quote) but it’s clear Brazil is giving investors a reason to envisage change across the asset class.
The attached chart shows a couple key aspects of how gold has traded in the last year or so:
As we begin the final trading day of August and traders begin to focus ahead to the Friday U.S. non-Farm Payroll report gold traders are finding gold continue to remain in the same trading range for the past 4 sessions.
Gold bugs finally found the strength to push gold slightly higher after 10 days of free fall this morning.
The spot price of gold formed an evening star Thursday – Monday sessions singling a return to the bottom of the trading channel.
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