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Gold gets left behind for the time being

Yesterday Gold was unable to really take advantage of drop in the dollar. As noted here in updates at the time, the metal did fall back after it had failed to hold a rebound back above $1,990. It then fell to a session low very close to $1,970 after the Fed boss started to speak. However, as US yields then fell back and further comments from Jerome Powell made it pretty clear the Fed was in no rush to move on rates again soon, gold rebounded into the US close. Gold closed at $1,982.53. It has made some further modest progress so far today, but once again that $1,990 level has proved top be elusive so far. Now, given the further drop in US yields and rising Yen one would be forgiven for thinking the metal has underperformed in real terms. However, we should perhaps remember that so much of the recent, more than $200 rise has been due to geopolitics and not about Fed dynamics. That is the only explanation I can offer right now for the inertia in the price action so far today. The range seen has been covered by 1,981.41 to 1,988.25. Gold is currently trading at $1,983.90

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