Gold has been rising steadily ever since the last summer’s 1350 breakout, now approaching the key long term resistance at the 1800 level. Fundamentally, gold has been primarily reacting to the lower nominal US interest rates, and rising real negative interest rates.
The Covid-19 lockdown was supposed to be another bullish trigger for gold. However, gold was sold-off hard in March of 2020 due to margin calls and rising US Dollar. Since March 23, gold has been rising, but positively correlated with the US stock market – which could be the major problem for gold over the short term. The question is what happens to gold when the stock market sells-off again? Will gold be immune from the next sell-all moment, which is fast approaching?