A very interesting 24 hours for the gold price. The North Korea fear trade was coming off early in the week and gold resumed a down trend, going as low as 1267.80. It wasn't helped by the EUR, JPY and GB all going weaker against the USD.
The DXY reached above 94, with 94.16 apparently resistance. The crappy US housing data released at 10.30AEST last night was the first spike back up. It jumped to 1272 quickly and the FOMC statement helped things along with the Fed Board divided on the timing of interest rates. Core PCI is still 1.5%, well short of the Fed's 2% target so how can you raise in that environment?
So now we are back above 1280 and it seems the NK fear trade has gone (though who knows if the real risk has diminished....)
JNUG up 6.6% and HUI up 2.4% so that is a much better reaction by the gold stocks
