Intermarket: Gold chops after FOMC minutes, watching Yen, DXY and S&P500

Gold has been in a chop since the post-FOMC minutes rally.

Gold has been a huge sell-off this month on the back of the market's anticipation of a Fed hike before the year is out and a strong rally in the DXY. We were at $1,374 highs back in July and now we are barely holding on to $1,250 today with DXY now up to peaks of close to 98.00. However, when we look across the spectrum of the usual suspects for correlation, we see that the S&P 500 is sideways/bearish at 2139 at time of writing at the top of a 2016 rally from 1807.

The U.S. elections will be the decider in respect of the fate of gold, DXY and the FTSE as it will also weigh on the Fed's next move as should Clinton get in, the Fed will be let off and could possibly make a move which should propel the dollar/yen forward initially and send gold lower while the S&P 500 will be stuck between a stronger dollar, tighter money, but more of the same and less uncertainty coming from a Clinton administration following on from Obama. In terms of levekls, Gold $1,205 to the downside as a key support and $1,300 is the psychological resistance.