Gold Now Tests the 0.382 as Yields and Oil Climb
Gold is under pressure today for three main reasons. One, it is carrying Friday's surprisingly hawkish Warsh speech at Jackson Hole. Two, oil is higher today, which spooks inflation fears. Three, that feeds higher yields.
Gold, the non-yielding asset, does not like rising yields. Investors can rotate out of gold, which yields nothing, and park in safer assets like US bonds for the yield. So you have a rotation from gold into bonds right now.
But these are all fresh. In my personal opinion, the market is likely to fade what Warsh said, and gold gets bid back up.
What needs to happen is for the dust to settle. Gold is at the 0.382 retracement. A recovery here, with oil and yields lower, would make sense for gold higher. If oil and yields do not settle, gold falls further. As of now, oil and yields are bid which makes me hesitate.
Honestly, I'm receptive to deeper pullbacks. I am bullish on gold, and so is the EdgeFinder.
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— Alan
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8August 31, 2026 1.5K 3
