Interesting that you think feds fund rate could be going up. Here in Australia the previous analogy is the 'engine firing on one cylinder' being Chinese enhanced commodity boom. Now that cylinder is misfiring and we have no backup. World economy is also firing on one cylinder ie China, while Japan/EZ are deflating to require stimulus so as you also fear USD is making their exports less competitive while their imports are causing deflationary effects. I just can't see how Yellen can risk money supply restrictions in such a fragile recovery.
Even the recent rally in our markets I suspect lacks market breadth. I now read the finance stocks chiefly Banks make up more than 50% of our asx200 index so even using that index measure is a lopsided view of the local economy. If the economy is performing why is Aus bond yields falling together with the AUDUSD? Maybe wait for Steven's mouth next week and buy the Aussie for a quick trade?
As for gold, yesterday's level of support is sure not at a random level as I posted earlier. A soft support with a 38% fib confluence together with a +ve momentum recently and a price action of a 2 bar reversal makes for continuing momentum driven rally.
