Gold has retraced from its November high of $1,516, but it is still up more than 18% year-to-date. The important element to note here is that the price is still trading well above the $1,500 mark—a critical level that gives hope to bulls.
Gold Price Neglects Equity Markets Strength
Despite the new record highs of the S&P 500 (on October 28, the S&P 500 reached 3,637), the gold price has been moving higher. Usually, a risk-on trade—meaning when the equity markets start to move higher—is associated with a risk-off trade; the gold price usually moves lower. But this textbook trade has failed to materialize. This shows that the bulls do have some force behind them.
