After yesterday's wild ride, gold has been choppy again today, showing strength early on before falling this afternoon after some positive data releases from the US - weekly jobless claims came in much lower than expected and the ISM manufacturing index has just been released, also coming in much better than expected.
The dollar has been surging higher all day and has just been given an extra boost by the ISM data. Equities have surged to an all time high and oil is powering higher again after its recent correction.
All of this is "business as usual", the interesting point is that gold has held up relatively well in the circumstances - we would have expected gold to be in free fall below 1300 given the behaviour of these influential outside markets, particularly the dollar strength being exhibited. As it happens, gold is slightly down, though holding above yesterday's lows at around 1314.
Support comes in at 1305, 1300, 1268-1270, 1260 and 1238-1242. Resistance above comes in at 1328, 1334, 1338-1342 and 1349. A break below 1305 should see an acceleration of the selling and a break above 1350 should see a surge towards 1400 and 1424, with little in the way of resistance before 1400 (perhaps some minor resistance at 1390).
Our strategy for our next trade is therefore to short a break of 1305 and take a long position on a break of 1350, however we are mindful that the NFP number tomorrow could introduce further volatility into the equation and we are reticent to initiate a fresh position before the NFP release at 1.30pm tomorrow.
The dollar has been surging higher all day and has just been given an extra boost by the ISM data. Equities have surged to an all time high and oil is powering higher again after its recent correction.
All of this is "business as usual", the interesting point is that gold has held up relatively well in the circumstances - we would have expected gold to be in free fall below 1300 given the behaviour of these influential outside markets, particularly the dollar strength being exhibited. As it happens, gold is slightly down, though holding above yesterday's lows at around 1314.
Support comes in at 1305, 1300, 1268-1270, 1260 and 1238-1242. Resistance above comes in at 1328, 1334, 1338-1342 and 1349. A break below 1305 should see an acceleration of the selling and a break above 1350 should see a surge towards 1400 and 1424, with little in the way of resistance before 1400 (perhaps some minor resistance at 1390).
Our strategy for our next trade is therefore to short a break of 1305 and take a long position on a break of 1350, however we are mindful that the NFP number tomorrow could introduce further volatility into the equation and we are reticent to initiate a fresh position before the NFP release at 1.30pm tomorrow.
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
