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The action in gold this morning should be concerning to the bull camp as the dollar remains vulnerable on its charts with five straight days of lower highs.

While not a major supportive development, treasury prices have added to last week's late rebound early today.

With a lack of global economic data overnight, generally lower equities, and a veritable avalanche of US scheduled data ahead this week some gold longs might be taking profits and moving to the sidelines temporarily...[MORE]

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Gold slipped on Monday as markets pared back expectations of the Federal Reserve’s easing cycle and cautiously awaited a key inflation reading this week, which is likely to provide an updated view on the timing of interest rate cuts.

Spot gold edged down 0.1% to $2,033.89 per ounce as of 1005 GMT, after rising to its highest since Feb. 7 on Friday. U.S. gold futures dropped 0.3% to $2,043.30 per ounce...[LINK]

Fortunately for the bull camp in gold, today's US economic reports slate is empty which could tamp down revived interest in the dollar following yesterday's flow of very favorable US housing and jobs data.

In retrospect, the higher high in April gold early Thursday was heavily dependent on the sharp washout in the dollar.

Unfortunately for the bull camp, the dollar staged a significant recovery and US treasury yields reached higher highs off further erosion of hope for a US rate cut...[MORE]

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While the press continues to tout flight to quality buying interest in gold from events in the Middle East, we are highly suspicious of that argument and think the ebb and flow of the dollar index trade is the primary focus of the gold trade.

Therefore, with the downside breakout/plunge in the dollar to the lowest level since February 2nd overnight, US treasury yields potentially capping out just below three-month highs, and broad-based risk-on sentiment from good Nvidia earnings the bull camp has several credible themes.

While it is possible that gold is deriving some investment support from surging Harmony gold mining shares, the company also predicted their production would increase by 14% and they recorded higher grades of ore than year-ago levels which are limiting gold futures prices...[MORE]

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With a higher high for the move overnight April gold has extended a slight bullish edge into another trading session.

Surprisingly April gold managed the higher high despite a measure of strength in the dollar.

However, a very minor and indirect negative impact on gold overnight came from a very hot New Zealand producer price index reading which for some keeps fear of global inflation in place.

In today's early action traders will be confronted with a US Fed speech, a 20-year US treasury bond auction, and perhaps most importantly the release of the FOMC meeting minutes from the Fed's most recent meeting...[MORE]

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