RBC makes the point I have been making for several months now. Gold has decoupled from DXY and real interest rates, its traditional price drivers:
Gold prices have rallied further, and while the evidence doespoint to continued strong central bank interest, Chinese demand, and strong physical interest broadly, these are not usually the most price predictive parts of our analysis.
It is important to stress here that these are relevant factors for gold, but rarely in recent times are they the overriding drivers of price or the most predictive parts of models on a sustained basis.
