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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