Despite the flash crash in the gold market last Friday, the dollar index climbed to above 94.5, but gold still rose steadily on Monday, approaching the $ 1,280 mark, it seems from the Federal Reserve will be in December, the rate hike pressure is likely to freed.
However, it is noteworthy that the gold prices in Asia and Europe have risen recently, but the price of COMEX gold futures has declined slightly.
Monday's rally suggests that there is still upside momentum for gold, which should give some comfort to the gold bulls, especially given the rise in the dollar index and the gold market's more than $ 4 billion single-throw smash hit on the gold market last Friday.
According to Lawrence Williams, an analyst at Sharpspixley, there seems to be a specific purpose behind this large-scale collapse whenever metal prices start to go up.
Some observers think investors sold gold on Friday for profit-taking, but the massive sell-off in a short period of time did cause market turmoil.
Lawrence Williams believes traders who want to profit do not want to "release" so much gold in such a short period of time. As with other flash bangs, its purpose appears to be to force a stop-loss on falling prices to trigger a liquidation of the HFT (High Frequency Trading) and thus to see metal prices start to spiral downward.
But that is not the case, which may be a positive factor for those traders who think gold is still bullish.
So far this year, the U.S. dollar index has dropped from just above 103 to slightly above 91 in early August, but has basically returned to the uptrend. The current dollar index is at 94.52, still down 8% this year, but up 3.5% from the August low. Gold is up 10.5% so far this year, slightly better than the dollar.
However, although prices have risen on Monday, gold has been in a "tank" turbulence mode recently and its volatility hit a four-year low.
According to Bloomberg data, the price of gold fluctuated only 3.3% in more than a month, the lowest level since February 2013, touching the 100-day moving average. In the past 28 days, the price volatility of gold has approached the lowest level in seven years.
