Gold exhibits some life falling to the bottom since September

The gold market was pricing for uncertainty into the US election but when the results were quickly clear, it slumped and has been on the back-foot since. It traded as low as $2537 today in the fifth straight day of declines.

It did find some support there with the low nearly matching a set of highs in August/September. The rebound in gold has also coincided with some buying in bonds and selling in Trump trades.

China is also on the backfoot, with equities there breaking lower following a period of consolidation after the October stimulus spike. Much of the buying gold in the past year has come from China retail, which is struggling to find investible assets. A further washout in stocks could pull people back into gold.

For now, caution is still warranted but note that Dec-Jan seasonals are particularly strong.