Starting: Gold- The Naive Trader
Today, Friday, I thought would be perfect to start a blog following a fairly naive optimistic young trader. I believe its best to focus on a few stocks/commodities etc, whatever you believe is most interesting. Personally I stick to commodities, as I find it the most engaging, specifically; Gold, Silver and Brent. All volatile items which from an Economists point of view are fairly easy to follow.
This afternoon, at 1:30pm GMT as I presume you know, the Non-Farm employment change and the unemployment rate of the US is released. I would argue there will continue to be a downward trend in unemployment. However forecast is only matching the previous Month of 4.4% (Forex Factory, 2017). But I see reason for there to be potential here for greater decline than expected. Trumps whole slogan of 'Make America great again' is pushing for greater investment within the US. While the effect is huge its effecting confidence. And confidence is really all the markets rely on to fluctuate. So if actual ends up being lower than the forecast I see opportunity. This will lead to a short but sweet rise in the USD against the GBP/EUR etc. As golds runs opposite to the dollar I reckon this could leave the chance to short gold, hoping for a downtrend.
Currently of writing, gold is sitting pretty at 1268 against the pound, I have shorted this and believe opportunity for this to fall to at least 1265 or below during the explanation of the unemployment change.
But at the end of this all I am only working on what I believe as a young interested human.
This afternoon, at 1:30pm GMT as I presume you know, the Non-Farm employment change and the unemployment rate of the US is released. I would argue there will continue to be a downward trend in unemployment. However forecast is only matching the previous Month of 4.4% (Forex Factory, 2017). But I see reason for there to be potential here for greater decline than expected. Trumps whole slogan of 'Make America great again' is pushing for greater investment within the US. While the effect is huge its effecting confidence. And confidence is really all the markets rely on to fluctuate. So if actual ends up being lower than the forecast I see opportunity. This will lead to a short but sweet rise in the USD against the GBP/EUR etc. As golds runs opposite to the dollar I reckon this could leave the chance to short gold, hoping for a downtrend.
Currently of writing, gold is sitting pretty at 1268 against the pound, I have shorted this and believe opportunity for this to fall to at least 1265 or below during the explanation of the unemployment change.
But at the end of this all I am only working on what I believe as a young interested human.
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