Recommendation Scenario 1: If Non-farm Employment change: at or above 165,000 and Unemployment Rate at 7.5 or below Short gold targeting 1220.00,1200.00 and 1180.00 Scenario 2: If Non-farm Employment change: below 160,000 and Unemployment Rate at 7.6 or above Long gold targeting 1270,1300.00 and 1320.00 We prefer to avoid any other scenario as it will be a mixed number and may cause sharp volatility.
Gold futures traded lower in the early part of Friday’s Asian session as bullion was weighed down in the aftermath of Thursday’s Bank of England and European Central Bank meetings.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery fell 0.43% to USD1,246.55 per troy ounce in Asian trading Friday after trading at USD1,246.25 a troy ounce during U.S. morning hours, down 0.7% on the day. U.S. markets were closed Thursday in observance of the Independence Day holiday.
Gold futures were likely to find support at USD1,180.35 a troy ounce, Friday’s low and a 34-month low and near-term resistance at USD1,276.05, the high from June 26.
Earlier Thursday, European Central Bank President Mario said that the central bank’s monetary policy will “remain accommodative as long as needed”.
He added that rates will stay low for an “extended period of time.” Draghi’s comments came after the ECB held its benchmark interest rate at a record low 0.50% in July, in line with expectations.
Goldman Sachs said the ECB "is more likely than not to ease further from here." The bank added that "more unconventional easing" is likely from the Bank of England.
Research house Capital Economics said it believes both BoE and the ECB will engage in further easing activities later this year. The BoE left its benchmark interest rate unchanged at 0.5% on Thursday and said economic data over the past few months was consistent with the recovery set out by the bank in its May inflation report, but warned that the "significant upward movement" in bond yields would weigh on the outlook for growth.
“In the Committee’s view, the implied rise in the expected future path of Bank Rate was not warranted by the recent developments in the domestic economy”, the BoE said.
The bank took the step of publishing a rate statement following its first meeting under the leadership of new Governor Mark Carney.
Elsewhere, Comex silver for September delivery dropped 1.12% to USD19.480 per ounce while copper for September delivery fell 0.14% to USD3.147 per ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery fell 0.43% to USD1,246.55 per troy ounce in Asian trading Friday after trading at USD1,246.25 a troy ounce during U.S. morning hours, down 0.7% on the day. U.S. markets were closed Thursday in observance of the Independence Day holiday.
Gold futures were likely to find support at USD1,180.35 a troy ounce, Friday’s low and a 34-month low and near-term resistance at USD1,276.05, the high from June 26.
Earlier Thursday, European Central Bank President Mario said that the central bank’s monetary policy will “remain accommodative as long as needed”.
He added that rates will stay low for an “extended period of time.” Draghi’s comments came after the ECB held its benchmark interest rate at a record low 0.50% in July, in line with expectations.
Goldman Sachs said the ECB "is more likely than not to ease further from here." The bank added that "more unconventional easing" is likely from the Bank of England.
Research house Capital Economics said it believes both BoE and the ECB will engage in further easing activities later this year. The BoE left its benchmark interest rate unchanged at 0.5% on Thursday and said economic data over the past few months was consistent with the recovery set out by the bank in its May inflation report, but warned that the "significant upward movement" in bond yields would weigh on the outlook for growth.
“In the Committee’s view, the implied rise in the expected future path of Bank Rate was not warranted by the recent developments in the domestic economy”, the BoE said.
The bank took the step of publishing a rate statement following its first meeting under the leadership of new Governor Mark Carney.
Elsewhere, Comex silver for September delivery dropped 1.12% to USD19.480 per ounce while copper for September delivery fell 0.14% to USD3.147 per ounce.
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TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
