Gold sinks to three week low, what's next

Strong US dollar part of the equation

Gold is being out-competed by bubbly stock markets at the moment. Today is looking like another bearish outside day after an early gain was completely wiped out. The latest push took out last week's low as the declines accelerate.

What's has hurt gold in the past two weeks is less demand for safety as Brexit worries fade. More specifically, central banks haven't pulled the trigger (or hit the panic button) in the way that markets had been anticipating.

The Bank of England opted to wait another month and the Fed has tried to reel in the idea that it will wait forever before hiking again. Good economic data has helped push that agenda. The implied probability of a Fed hike in the Fed funds futures market is up to 43% from 12% when gold was at its near-term peak.