Gold this year — despite the worsening economic news — has taken it on the chin more times than any heavyweight boxer.
The roller coaster ride from its $1,302 high on Jan.23 to $1,149 low on St. Patrick’s Day, gold has not performed as well in dollar terms as other commodities or stocks.
As the US economy was having a negative GDP quarter gold was at its low, as Greece was defaulting gold was challenging its low for the year, not exactly how the precious metal should react.
Putting price fixing aside — since I have not heard anything further on the Feds probing the gold price manipulation, which like Libor and treasury auctions are said to be allegedly fixed — the YTD chart is showing mostly lower highs and lower lows. Again, not what you would expect in the last 6 months.
This bears watching as the US moves through the summer into possible recession, where trend shows we will put in a new low. Dollar strength going forward is also a headwind for gold.