Gold erases early losses in rebound from $1900

New York (Sept 8)  The gold buyers continue to lurk close to $1900. The precious metal fell to a low of $1906 today but has quickly rebounded to $1934 and is now higher on the day.

There's a clear consolidation pattern in gold right now and I don't expect that to change until we get some clarity on:

•The path of the US dollar
•US fiscal stimulus (or not)
•The US election and likelihood of a divided congress
•General risk mood

I think those things are generally negative risks for gold and seasonals are poor until December so I'm more cautious on gold than I have been in months.

That said, price action is the ultimate decided and to turn a loss today into a gain even with Treasury yields lower and high risk aversion is impressive.

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