Jobs report Friday was eventful to say the least.
To sum things up, the expectation for a Fed rate hike was pulled forward which is why we are removing GLD. More deflation from a stronger USD with rates moving higher in the near-term (NOTE: A stronger USD vs. potential more cowbell from Draghi) is NOT good for gold.
Bottom line? More deflation and higher rates is not a recipe for a long gold position. Even if the Fed doesn’t hike in December, the deflation risk for the next month as the world re-positions up for a rate hike could continue pressuring gold prices.
It’s best to stay out of the way.