Gold gives back some gains after test of $2400

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Gold
rose
as
high
as
$2386
earlier
today
but
has
since
sagged
back
to
$2372.

There
is
something
of
a
‘buy
everything’
mode
unfolding
in
stocks
at
the
moment
but
the
optimism
hasn’t
spread
to
gold.
It
trade
above
$2400
in
April
and
May
but
has
struggled
to
get
back
above.
Last
week
it
came
close
before
a
sharp
drop
lower
on
Monday,
in
part
due
to
Chinese
data
showing
the
PBoC
wasn’t
buying.

However
it
impressively
steadied
today
and
took
another
run
before
the
latest
round
of
selling.

When
I
zoom
out,
there
is
clearly
a
period
of
consolidation
unfolding
following
and
impressive
run
in
March/April.
That’s
generally
promising,
though
the
trade
is
to
go-with
a
break
of
$2450
to
the
upside
or
$2275
to
the
downside.

Tomorrow’s
US
CPI
report
may
go
some
way
towards
resolving
that.
A
hot
CPI
report
should
weigh
on
gold
while
a
sign
of
lower
inflation
would
mean
lower
rates
and
should
boost
gold.