Gold is Flashing a Warning Signal

Gold is Flashing a Warning Signal

Written by: PaxForex analytics dept - Thursday, 26 December 2019 0 comments

The Santa Clause rally lifted equity markets, but Gold advanced in unison, therefore flashing a warning signal that one market is wrong about 2020. The US Dollar is under pressure as well, assisting the advance in this precious metal. Gold is priced in US Dollars and often enjoys an inverse relationship, meaning that a sell-off in the US Dollar results in a rally in Gold. As US equity markets pushed to new all-time highs, investors and traders opted to ignore the red flags flashing around the globe. Gold is shining as a result of what could be a very turbulent 2020.