Gold Defies Hawkish Fed

Gold defied another hawkish Fed decision this week, consolidating high in its immediate wake. That was an impressive show of strength, after this extreme Fed tightening cycle hammered gold for a half-year or so. That strong performance reflects gold-futures speculators’ weakening resolve to keep shorting. With their long-side selling exhausted, they have massive mean-reversion buying to do which is super-bullish for gold.