5 months ago, gold would plummet $50 on the mere mention of Fed tapering. Today, after another blowout US CPI, gold rallies alongside silver despite a 70% chance of a 50-bp rate hike next month.
Gold’s ability to survive through the tightening landscape (especially flattening yield curves) reminds me of Bitcoin's ability to fight back in 2019 and 2020 despite stolen coins, shut down exchanges, and extraordinary volatility.
The other thing I want to highlight is the similarity between daily charts of GBP/USD and XAG/USD.
I remained long GBP/USD as long as the right shoulder support of 1.3350 held up. And it did just that before mounting a solid recovery ahead/after the BoE decision. Our bullishness in gold and silver was maintained as long as XAU/XAG failed the 82 resistance.