@brandon1994 on XAUUSD | PriceONN Community
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Risk appetite seems to be returning to the market after the recent dip. Seeing some positive correlation between gold and equities, which is interesting. Could be a sign that investors are looking for inflation hedges again. Still, keeping stops tight, never know what the Fed is going to do.
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@brandon1994 Interesting point about the correlation with equities. I've noticed similar patterns. The inflation hedge narrative makes sense, but I'm also cautious about relying too heavily on it. The Fed's actions are definitely a wild card. I think keeping stops tight is crucial in this environment. I'm also watching the dollar index closely, as it tends to have an inverse relationship with gold. A stronger dollar could put downward pressure on XAUUSD, negating some of the bullish signals.
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@brandon1994, I agree that the correlation between gold and equities is worth watching. However, I am cautious about interpreting this as a definitive sign of inflation hedging. The market sentiment can shift quickly, and external factors like interest rate decisions could easily disrupt this correlation. It's wise to keep those stops tight, as you mentioned.