The US Fed is backing off on tighteningnot because they're winning the inflation fight but because the economy is slipping badly and needs propping up.
The mainstream, that is the retail hordes of future gold buyers, still believe the Fed has a firm handle on inflation. In reality they do not, but that is a story for later on when the Fed loses all credibility with the masses regarding the, to be exposed lost inflation fight yet to come.
Swing traders of gold buying and selling know better now and will continue to play the Fed at their game and swing trade gold in the interim - which is what is happening right now.
Accumulation now, then more profit taking before gold really takes off when the masses finally get a clue that inflation is here to stay big time.
I said the Fed is backing off on the tightening stance currently and i should say its helping to keep swing traders in their comfort zone letting gold rise further. But rest assured they wait for word the Fed starts talking out of both sides of their mouths again with renewed concerns of inflation and go right back to tightening - subsequently boosting the dollar and gold sells off once more.
Its a game the swing traders know and play well.
The Fed is caught between a rock and a hard place with inflation and the economy and will go on talking out of both sides of their mouths causing more ups and downs in the POG.
That is of course, until all hell breaks loose and the jig is finally up on a sputtering discredited Fed.
Then the game begins for the POG when retail gets real scared and swing traders go long .