Gold Tests News Today

A holiday shortened week saw the US dollar slide, prompting a small rally in gold, while Sterling flexed its muscles after a robust PMI release.

Gold Blues as Silver Woos February was a tough month for gold, which marked its worst monthly performance since November 2016. Spot gold fell $114/oz, or 6.15%, to close the month at $1,734/oz. Half of this decline came in the two final days of February, as bond selling spiked into near panic mode and triggered a multi-asset sell-off into month-end. Figure 1 shows how gold has been inversely correlated to bond yields. February’s pullback occurred on the back of various developments. Rising en...