Gold saw a volatile day of trading yesterday, as options expiry days often are. The price fell as low as 1309 in early trading before rallying into the close, with gold closing near the highs of the day at 1340.
Overnight, gold has fallen back even though dollar weakness persists, which is worrying for the bulls. We note that recently gold has fallen sharply whenever we see dollar strength, though barely rises at all in the face of dollar weakness.
The bearish RSI divergence on the 4 hour chart is still apparent and suggests that the momentum behind this rally is fading - we expect to see lower prices next week, particularly if the dollar starts to rally as we suspect it will.
Equities are pausing after a strong run up, as is oil. We expect further strength in both these markets which will pressure gold further. However, if oil prices start to run away, inflation concerns will re-emerge and economic growth will start to be threatened, which should be gold positive.
Overnight, gold has fallen back even though dollar weakness persists, which is worrying for the bulls. We note that recently gold has fallen sharply whenever we see dollar strength, though barely rises at all in the face of dollar weakness.
The bearish RSI divergence on the 4 hour chart is still apparent and suggests that the momentum behind this rally is fading - we expect to see lower prices next week, particularly if the dollar starts to rally as we suspect it will.
Equities are pausing after a strong run up, as is oil. We expect further strength in both these markets which will pressure gold further. However, if oil prices start to run away, inflation concerns will re-emerge and economic growth will start to be threatened, which should be gold positive.
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GOLD CURRENT TRADE
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New Order
Sold Oct Gold At 1338.24
Stop 1363.24 On July 26/2013
==============================================
GOLD CURRENT TRADE
==============================================
New Order
Sold Oct Gold At 1338.24
Stop 1363.24 On July 26/2013
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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
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
