The Retreating Gold Continues
The week opened quietly with Monday holding a very high level which seemed to be almost where the yellow metal peaked for the week, levels of $1344 were hit however my belief of $1350 coming into play may be just too soon.
Tuesday was quite a damaging day for Gold, UK data release were weak, the CPI y/y results were straight on forecast at 3.0%. Yet other releases from the UK weren't as expected, coming in below forecast. PPI Input m/m was 0.4% below forecast at 0.1% which was surprisingly damaging, and by the end of the afternoon Gold had fallen $10 from Mondays high. But also I believe a lot of the movement was as a result of the volatility surrounding the dollar through Tuesday's trading period. Yet the dip did rebound later in the evening, with Tuesday closing at $1340.
Wednesday had a big fall for the Yellow metal, after opening and witnessing a short upward rally to $1343 it looked as though the bull would continue. But that was short lasted, we saw just a downward fall for the majority of the day after this, there were numerous releases in the Canadian economy which didn't create much movement which was surprising. We saw volatility during the period but the direction wasn't really influenced and I don't really know why. But the biggest dip was caused by something completely different it seems, within about 15 minutes we saw a fall of over $10 which is huge and I really have no explanation of why this happened once again!
Thursday and one of the fairly unknown releases were the Chinese GDP q/y, and this came in above forecast by 0.1% yet this caused a fairly substantial dip in the Gold market. However this downward direction was countered by bad results from the US Building Permits release, coming in almost 100k under forecast, which is big however Thursday was more of a volatile day than an actual directional day, it did continue to fluctuate however Gold closed only 2k lower than it opened on Thursday.
Friday gave hope than maybe the bearish position may not be continuing, we saw a strong run in the early morning which was mainly due to the continuing long-running fall of the dollar. Yet this direction was reduced during the afternoon and evening period. But also the bad results from the UK Retail Sales m/m were -0.7% below the forecast which were also negative and therefore it helped reduce the positive direction that Gold seemed to be moving in. By the end of the week nothing really drastic happened and a strong directional shift wasn't seen so maybe the hold position is where we see Gold now and that it will continue to go further upwards as the weeks progress. Furthermore, the continuing dipping of the dollar seems to be the main factor effecting the long-term bull in the Gold market and I believe it highlights the opportunity for further growth in the positive direction of the Gold market, thus it seems $1350 is a realistic goal for the next week or so however the Dollar may stop retreating and therefore Gold may just hit another bear position.
The Naive Trader
Forex Factory, 2018
Investing.com, 2018
Trade.com, 2018
Tuesday was quite a damaging day for Gold, UK data release were weak, the CPI y/y results were straight on forecast at 3.0%. Yet other releases from the UK weren't as expected, coming in below forecast. PPI Input m/m was 0.4% below forecast at 0.1% which was surprisingly damaging, and by the end of the afternoon Gold had fallen $10 from Mondays high. But also I believe a lot of the movement was as a result of the volatility surrounding the dollar through Tuesday's trading period. Yet the dip did rebound later in the evening, with Tuesday closing at $1340.
Wednesday had a big fall for the Yellow metal, after opening and witnessing a short upward rally to $1343 it looked as though the bull would continue. But that was short lasted, we saw just a downward fall for the majority of the day after this, there were numerous releases in the Canadian economy which didn't create much movement which was surprising. We saw volatility during the period but the direction wasn't really influenced and I don't really know why. But the biggest dip was caused by something completely different it seems, within about 15 minutes we saw a fall of over $10 which is huge and I really have no explanation of why this happened once again!
Thursday and one of the fairly unknown releases were the Chinese GDP q/y, and this came in above forecast by 0.1% yet this caused a fairly substantial dip in the Gold market. However this downward direction was countered by bad results from the US Building Permits release, coming in almost 100k under forecast, which is big however Thursday was more of a volatile day than an actual directional day, it did continue to fluctuate however Gold closed only 2k lower than it opened on Thursday.
Friday gave hope than maybe the bearish position may not be continuing, we saw a strong run in the early morning which was mainly due to the continuing long-running fall of the dollar. Yet this direction was reduced during the afternoon and evening period. But also the bad results from the UK Retail Sales m/m were -0.7% below the forecast which were also negative and therefore it helped reduce the positive direction that Gold seemed to be moving in. By the end of the week nothing really drastic happened and a strong directional shift wasn't seen so maybe the hold position is where we see Gold now and that it will continue to go further upwards as the weeks progress. Furthermore, the continuing dipping of the dollar seems to be the main factor effecting the long-term bull in the Gold market and I believe it highlights the opportunity for further growth in the positive direction of the Gold market, thus it seems $1350 is a realistic goal for the next week or so however the Dollar may stop retreating and therefore Gold may just hit another bear position.
The Naive Trader
Forex Factory, 2018
Investing.com, 2018
Trade.com, 2018
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