July 13, 2023 - (Gold Market Wire) - Gold gapped higher yesterday and is holding on in the Far East. The market, for now, continues to be strong.

So far so good. We filled two in the money positions with our scale down buying program at $1950 and $1900. The trade was built on the thesis that we were only going to have a normal retracement before heading back up to the high. Of note is the cross of the 100-day moving average, which played a roll in the drift lower.

It is worth noting that Gold's recovery is happening within an environment where interest rates look increasingly like they are going to stay higher than people many traders have expected. That makes the recent rally all the more impressive. US Dollar weakness is certainly part of the picture. A rather dramatic reversal of fortunes for the Euro, no doubt fuelled by NATOs recent 'cold shoulder' to Ukraine. The diminishment of the prospects of a wider European war are behind the recovery.

Are we about to have the market return to macro-economics for a while? Well, everything is as it was a couple years ago, but it's now a lot worse. The debt is higher in western governments. The German economy is in a ferocious contraction. France is only starting to recover from a massive wave of civil unrest and relations between Washington and Beijing continue to deteriorate.

All fuel for Gold.