Dollar Rebounds Above 99 as Gold Fails to Break Key Level
The latest institutional trading desk flash report shows that spot gold is drifting lower after the open, failing to hold above $4,620. The US Dollar Index has rebounded back above 99, exerting pressure on non-dollar currencies. According to trader Richard, spot gold's price is unable to break through a bearish cloud overhead and is trading within a descending channel.
Silver remains rangebound with no clear direction, while Richard notes that the two metals' price drivers are diverging under the current macro environment. Industrial demand factors carry greater weight for silver, which is increasingly reverting to its industrial attributes. In contrast, gold's correlation with monetary policy, long-dated US rates, and bond risk is stronger.
The core logic behind crude oil's rebound since August 25th is that actual flows through the Strait of Hormuz have not yet recovered, meaning oil prices tend to find buying support after dips. Richard believes that crude will oscillate repeatedly within the $80, $90 range due to the tug-of-war between geopolitical risk premium and demand-side expectations.