Rumors are much more fun than facts. The latest rumor on the Street is that Janet Yellen will be replaced next year by Jerome Powell, a current Fed Governor known to be more dovish. This rumor led to a drop in the US Dollar and a pop in gold, but possibly not enough to chase. Still, the spike is interesting in the context of recent gold price news.
In case you’ve been living under a rock lately, gold is stuck in investor hell at the moment. Folks seem to be a bit twitchy these days; after gold dropped down through 1300 last week, nervous folks started wondering if we would see 1200 or less soon.
Such talk is hugely premature, of course. Seeing huge support at 1265, your Gold Enthusiast thought it wise to just wait and let a few waves pass under the ship.