After the surprising run of positive trading sessions in the last few days, stocks are slipping, and we are seeing a temporary return of risk-off. It is not a big surprise seeing oil declining in this scenario, while gold is gaining strength as liquidity flows back into bullion markets, despite the recovery of the greenback.
The spot price of gold has broken through the resistance level of $1,700 and the recovery seems likely to continue if there are further declines on stocks. Vice versa a fall below the recent bottom of $1,680 would be seen by markets as a negative signal, opening space to sellers.
