GOLD 0.51% $1,391.7 gold futures

There is a direct correlation between the XAUUSD and XGD BUT if...

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    There is a direct correlation between the XAUUSD and XGD BUT if you compare to XAUAUD then XGD performance 'looks' slightly better.

    The upward trend is still intact and when price spike up through news fundamental, gold price tend to go sideways until fresh fundamentals drive it in either directions. If you want further exaggerations then look no further than the bigger local gold producers for the slight 'panic' with the sell off.

    Buying opportunity? EVN management seems to think so with another round of asset purchase. I am not qualifying their decision as confirmation there is a lot of gold rally ahead. It is going to be a gamble between a foresight move or another case of buying assets at top valuation.

    XAUUSD has a lot of overhead resistance to negotiate from a chart perspective, anywhere above $1500 on the longer TF. I can't get a clear picture from the fundamental puzzle generated by Feds rate speculation, world growth and the consistent QE baton passing. We are still living in a deflationary environment globally if you measure the attraction to bond prices for risk averse investors or the opposite yield chasing hungry instos without a more credible yield asset class beside the risky equities market. Such paradox continue to amaze me but I fully understand the limited choices available.
 
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