Gold holds the lows for the fourth time

Gold is back to flat today after falling earlier.

The market is now pricing in 131 bps in Fed easing in the coming year, up 6 bps from yesterday following a couple of poor economic data readings today. The view is that the Fed will cut despite rising inflation as the economy slows.

Technically, this is now the fourth dip down to the $3260 level and it’s held each time.

We also have Peter Navarro on TV right now sprouting all kinds of non-sense and that isn’t exactly screaming to buy the US dollar.

I’m not sure it’s time to get bullish gold right away but if it can hold this low and get back above $3375, that’s a very strong signal.

This article was written by Adam Button at www.forexlive.com.