The efficiency of gold was fairly stable within the first half of 2019 and even outpaced the rally in main fairness indices just like the Dow Jones for a part of the yr. But, a rebound in sovereign yields since September – spurred largely by a flood of danger urge for food in response to an obvious de-escalation within the US-China commerce conflict – weighed negatively on spot gold costs because of the inherent relationship between bullion and rates of interest.
GOLD PRICE CHART (AUGUST 2006 TO DECEMBER 2019) (Chart 1)
The rally in spot gold costs ran out of steam on September 04 when the commodity printed its 2019 excessive close to the $1,555 mark, which aligns roughly with the September 2011, December 2011 and Could 2012 month-to-month lows. This space of technical confluence can also be underpinned by the 61.8% Fibonacci retracement stage of the August 2011 to December 2015 bearish leg recorded by spot XAU costs.
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