New opportunity comes up in Gold

Short comment
The most traded future of Gold touched 1,167 at Aug 16, and has recovered its plunge since. The future was traded in 1,210s at this point. I believe Gold is trying to changing its direction.

Yields of 10y US T-Note and German Government Bund aren't going up. Yield of 10y US T-Note couldn't go beyond 3% in near future. The markets already established the yield firmly. One of the reasons why Gold had been devalued is expected yields of the bonds.

Another reason, more important than the yields, is weak US dollar. Dollar index is decreasing gradually and it's mid-94s now. In now, reverse-correlation between the metal and USD is the most influential factor. Inflation could help to the recovery.

People have been worrying about inflation which indices are showing the higher than expected. Gold is traditional instrument to hedge inflation, which 10y US T-Note can't do now with under 3% yield.

Still, I beilieve we can't see Gold as one of the safest assets yet. It's just one of the assets which could go up with supports from this situation: too low yield of 10y, weak USD and higher inflation.

There isn't a obstacle to stop the rise of Gold. My new target for the most traded future is $1,250.0