Strategy Video: Gold's Biggest Rally in 9 Months a Trend Spark?
• Spot gold rallied over $40 or 3.3 percent Thursday - the biggest advance in 9 months
• Explanations ranged from dollar weakness to a stimulus swell to a financial crisis hedge
• There looks to be little of those fundamental drivers in play, which leaves a speculative breakout
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Gold bulls are cheering a strong break from a three-month bear trend and the biggest single-day rally for the metal in nine months. The question is whether this is a one-off or the start of something more. To answer that, we need to look at what is driving the commodity. Explanations for the move ranged from FOMC reaction to financial market hedge. Yet, those fundamental themes weren't playing out in the the markets. This remarkable move in an otherwise calm sea looks more like the massive moves back in April and June of 2013. What happened back then, and does it support the development of a new trend? We focus on gold and its bearings in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.