“The basic idea is that gold and cash compete for a similar pool of investors’ money. If the central banks implicitly or explicitly causes cash to yield negative returns, then gold will look better in comparison,” according to CNBC.
“The rally from the December low is continuously accelerating and short-term RSI readings are clearly showing overbought conditions. Therefore, bulls might be jumping into an emotionally charged market that needs to calm down in order to put together a sustainable advance,” adds Barron’s.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.