Gold down $2 to $1719

Gold down $2 to $1719

Gold fell as low as $1699 but has rebounded to virtually unchanged on the day in a solid show of resilience that's been aided by USD softness.

Earlier this week, Doubleline Capital CEO Jeff Gundlach called a bottom for gold. It's premature to judge it but there are some solid signs. The bounce came off the June 2020 low and today's flush lower didn't really challenge it.

The fundamental backdrop certainly isn't undermined by anything that's happening in the world. Yesterday's $1.9T spending package from Biden and the Fed's steadfast attitude on rates highlight the risks of instability.

The biggest drag for gold appears to be competition from crypto. Bitcoin is a shade away from all-time highs at $57,500 today down 0.2%. I don't see that changing but ultimately there's plenty of room for both Bitcoin and gold bulls.