Bloody Monday
There was meant to be nothing exciting or of huge consequence hitting the gold market till Wednesday, yes Gold is now back on its bearish trend but Monday caused quite some stress.
I was just living my life as always and then all of a sudden the Gold position got absolutely fucked, like booooooom. Before I could react Gold jumped from 1274 - 1281 against the dollar. I was so confused, like what had happened. Did Mr Trump declare war, did the US dollar just hit new highs for no reason.
But I honestly don't know exactly why, as I spend more times reading the markets I will be able to obtain greater knowledge of why this shift took place. I originally thought it was the release of the CBI Industrial Order Expectations from the UK, as the result was -2 below the index and -11 away from the forecast. However this makes no sense, as it would lead to the pound dipping further against the dollar thus leading to the dollar gaining even greater value. This would lead to a dip in Gold value but we saw the opposite and therefore cannot blame this for the quick movement in value. So I don't know what caused such a change in value, like it was a 7 dollar movement per ounce which is pretty big so I don't believe it could be a fast movement from a trader buying large amounts.
Yet I have been looking at the USD/JPY and there is a clear correlation where it dipped heavily during a very similar time period so it can't be a very aggressive trader buying. But I don't know tbh, I need to start following the Dollar more closely!
Concluding this, after this scare yesterday Gold seems on track to continue its bear market trend. There doesn't seem to be anything happening till tomorrow(hopefully) that should drastically damage this position, thus I see this downtrend continuing nicely for the next few days.
I was just living my life as always and then all of a sudden the Gold position got absolutely fucked, like booooooom. Before I could react Gold jumped from 1274 - 1281 against the dollar. I was so confused, like what had happened. Did Mr Trump declare war, did the US dollar just hit new highs for no reason.
But I honestly don't know exactly why, as I spend more times reading the markets I will be able to obtain greater knowledge of why this shift took place. I originally thought it was the release of the CBI Industrial Order Expectations from the UK, as the result was -2 below the index and -11 away from the forecast. However this makes no sense, as it would lead to the pound dipping further against the dollar thus leading to the dollar gaining even greater value. This would lead to a dip in Gold value but we saw the opposite and therefore cannot blame this for the quick movement in value. So I don't know what caused such a change in value, like it was a 7 dollar movement per ounce which is pretty big so I don't believe it could be a fast movement from a trader buying large amounts.
Yet I have been looking at the USD/JPY and there is a clear correlation where it dipped heavily during a very similar time period so it can't be a very aggressive trader buying. But I don't know tbh, I need to start following the Dollar more closely!
Concluding this, after this scare yesterday Gold seems on track to continue its bear market trend. There doesn't seem to be anything happening till tomorrow(hopefully) that should drastically damage this position, thus I see this downtrend continuing nicely for the next few days.
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