Falling Treasury yields and a weaker US dollar have helped gold gain in 3 of the 4 trading days this week. Today it's up $24 to $1983 after starting the week at $1935.
One of the under-the-rader moves in the fixed income market this month is the fall in real yields. The combination of lower implied inflation and the pining for Fed rate cuts -- along with decent global growth -- is a good sign for good. In addition, China and Russia continue to accumulate reserves.
Seasonally, there is a great tailwind from gold starting in December and technically, the latest dip was right in the 50% range of the October rally, which is bullish if $2010 can break.
