Getting back on track
As we come up to Christmas the markets have been very volatile, I am hearing talk that the Bitcoins hype wave is effecting Gold prices as Bitcoin is seen as this incredible asset and the hype just continues however I doubt this will last and I honestly don't believe it.
Looking back at this week it has been very interesting, the weeks opening showed signs of a continue of the bear position, with Spot Gold hitting lows of almost 5 months on Tuesday, falling below $1240 per troy ounce. Which didn't look good for the week end for Gold and then after Tuesday's UK's CPI being above forecast at 3.1% and Mr Carney now having to explain why inflation is so high I really didn't see much hope for any bull movement this week at all. Yet that seemed to be the worst of it, after this Gold hit a short rally to close Tuesday above $1240 at $1243.
While Wednesday, a busy day for data release again, I didn't think it would help as there was US inflation figures and considering how well US data releases have been doing I saw this as another point where Gold would continue downwards. But thankfully I was wrong, US inflation was seen to be just below target. Which meant the dollar dipped a little allowing for a continued upward movement for Gold and also interest rates holding steady at 1.5% meant we saw no negative consequences on the direction of Gold and thus Wednesday closed around $1254 which is awesome.
While Thursday was a busy day and thus the market was going to be very volatile, we saw numerous big data releases from the US and UK throughout the day. The UK's releases held on target, interest rates holding and the MPC vote came in a 9-0-0, perfectly on forecast. This helped reduce any damage done to the cable throughout the early afternoon period. Yet US releases in the afternoon/evening time did the real damage, Consumer Retail sales m/m and Retail Sales m/m both came in above forecast by 0.4% and 0.5% respectively. These differences are big and because of Wednesdays less impressive results these surprised the market and caused a quick and damaging dip in Gold, falling almost $10 in the evening period.
Friday now, and its looking quiet for releases today, we are seeing a nice and steady bull run, but I feel its more correcting for yesterdays dip so once we hit $1260 it shall be fascinating to watch how the market starts to direct itself, hopefully up!
The Naive Trader
Forex Factory, 2017
Investing.com, 2017
IG, 2017
Looking back at this week it has been very interesting, the weeks opening showed signs of a continue of the bear position, with Spot Gold hitting lows of almost 5 months on Tuesday, falling below $1240 per troy ounce. Which didn't look good for the week end for Gold and then after Tuesday's UK's CPI being above forecast at 3.1% and Mr Carney now having to explain why inflation is so high I really didn't see much hope for any bull movement this week at all. Yet that seemed to be the worst of it, after this Gold hit a short rally to close Tuesday above $1240 at $1243.
While Wednesday, a busy day for data release again, I didn't think it would help as there was US inflation figures and considering how well US data releases have been doing I saw this as another point where Gold would continue downwards. But thankfully I was wrong, US inflation was seen to be just below target. Which meant the dollar dipped a little allowing for a continued upward movement for Gold and also interest rates holding steady at 1.5% meant we saw no negative consequences on the direction of Gold and thus Wednesday closed around $1254 which is awesome.
While Thursday was a busy day and thus the market was going to be very volatile, we saw numerous big data releases from the US and UK throughout the day. The UK's releases held on target, interest rates holding and the MPC vote came in a 9-0-0, perfectly on forecast. This helped reduce any damage done to the cable throughout the early afternoon period. Yet US releases in the afternoon/evening time did the real damage, Consumer Retail sales m/m and Retail Sales m/m both came in above forecast by 0.4% and 0.5% respectively. These differences are big and because of Wednesdays less impressive results these surprised the market and caused a quick and damaging dip in Gold, falling almost $10 in the evening period.
Friday now, and its looking quiet for releases today, we are seeing a nice and steady bull run, but I feel its more correcting for yesterdays dip so once we hit $1260 it shall be fascinating to watch how the market starts to direct itself, hopefully up!
The Naive Trader
Forex Factory, 2017
Investing.com, 2017
IG, 2017
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