Gold climbs to highest since July 2014 then tumbles
Uncertainty and a Fed that suddenly seems like might not hike at all gave gold an boost early today but it has completely turned around in the second big reversal in a month.
The first came three weeks ago. The Fed pushed a coordinated campaign to raise the odds of a hike in July or September. That sent gold to a three month low as it broke the March lows.
That reversed after failing to close below the March low and shot higher on the weak nonfarm payrolls report.
It continued higher for three weeks and today hit a two year high but before the paint was dry on today's candle, gold has crashed back, falling $30 from the highs and slapping a big intraday reversal on the chart.
Ultimately, I think the first reversal is the bigger one. Something appearing to break down and then shooting in the other direction is an extremely powerful signal.
Today's move, however, can't be ignored and the waters are certainly more muddled than they were a few hours ago.
