The Constant Political Underlying issues.
This week has seen a steady rise in the US Dollar after falling to deep lows in the 105 region against the Yen. For Gold this has created some turbulence as a result and is now sitting low in the $1315 region in Friday afternoon and evening.
Monday saw a short upwards rally in the morning before declining steadily, falling around $8 as a result of strong positive movement in the US Dollar and also helped from the result from the US ISM Non- Manufacturing PMI coming in above forecast at 59.5(Forex Factory, 2018). However the precious metal regained some ground closing at $1321 by the end of Monday's trading.
Tuesday was a fairly quiet day for results but we saw strong growth in Gold, rising quickly throughout the day. The Australian Cash Rate result was bang on forecast at 1.5%, not doing much for Gold, which is as expected. Their Retail Sales and Current Account were below forecast yet implications were once again small for the Gold market. Then late morning we witnessed a a quick development and Gold rallied, rising from $1321 up to $1337 by the late afternoon, which is a pretty insane growth period. Comments made by the FOMC Member Dudley helped aid this growth and then the FOMC Member Brainard spoke it continued this strength. However Tuesday's development seemed to be strongly based on just a decline in confidence in the Dollar more than actual results, by close Gold was still holding high and closed at $1338 on Tuesday.
Wednesday's main focus was on the US's ADP Non-Farm Employment Change, which didn't disappoint. It came in 36k above forecast which did lead to a big dip in Wednesdays market, we saw the yellow metal lose almost the whole ground they obtained on Tuesday. Worth watching were the Canadian BOC Statement and their Overnight Rate, but much like the Australian results, where because of the lack of movement from the forecast we witnessed almost no impact on Gold. So by Wednesday's close, Gold was sitting at $1325.
Thursday actually ended up being surprisingly unexciting, Gold fell slightly throughout the days trading with the only big event was the US Unemployment Claims. This was actually above forecast by about 10k. This was also aided by the decline in tension from the US Korea pickle, allowing greater confidence in the Dollar and this created a decline in investors moving into Gold. So by Thursday close the shiny metal was down to $1319.
Friday's focus was again on the US, we had the Average Hourly Earning, Non-Farm Employment Change and their Unemployment Change. Non-Farm Employment change was hugely different from forecast, it came in over 100k above! It came in at 313k which should of created an insane dip however because of the Unemployment Change coming in 0.1% above forecast it seemed to counter this, which is fascinating. Average Hourly Earning was a little bit below forecast however because of the significant variation in the other too variables meant the consequences weren't felt. Worth watching were the BOJ Policy Rate, Monetary Statement and Press Conference, however again, we saw little effect because the Rate was bang of forecast.
This week has been interesting as always, but as a result of many political factors the variation of Gold in the market this week has been so hard to predict. But who knows what this could hold, maybe we will see further declines of 'war' talks between the US and Korea ease pushing the precious metal below $1300.
Peace.
The Naive Trader.
Forex Factory, 2018
IG.com, 2018
Investing.com, 2018
Monday saw a short upwards rally in the morning before declining steadily, falling around $8 as a result of strong positive movement in the US Dollar and also helped from the result from the US ISM Non- Manufacturing PMI coming in above forecast at 59.5(Forex Factory, 2018). However the precious metal regained some ground closing at $1321 by the end of Monday's trading.
Tuesday was a fairly quiet day for results but we saw strong growth in Gold, rising quickly throughout the day. The Australian Cash Rate result was bang on forecast at 1.5%, not doing much for Gold, which is as expected. Their Retail Sales and Current Account were below forecast yet implications were once again small for the Gold market. Then late morning we witnessed a a quick development and Gold rallied, rising from $1321 up to $1337 by the late afternoon, which is a pretty insane growth period. Comments made by the FOMC Member Dudley helped aid this growth and then the FOMC Member Brainard spoke it continued this strength. However Tuesday's development seemed to be strongly based on just a decline in confidence in the Dollar more than actual results, by close Gold was still holding high and closed at $1338 on Tuesday.
Wednesday's main focus was on the US's ADP Non-Farm Employment Change, which didn't disappoint. It came in 36k above forecast which did lead to a big dip in Wednesdays market, we saw the yellow metal lose almost the whole ground they obtained on Tuesday. Worth watching were the Canadian BOC Statement and their Overnight Rate, but much like the Australian results, where because of the lack of movement from the forecast we witnessed almost no impact on Gold. So by Wednesday's close, Gold was sitting at $1325.
Thursday actually ended up being surprisingly unexciting, Gold fell slightly throughout the days trading with the only big event was the US Unemployment Claims. This was actually above forecast by about 10k. This was also aided by the decline in tension from the US Korea pickle, allowing greater confidence in the Dollar and this created a decline in investors moving into Gold. So by Thursday close the shiny metal was down to $1319.
Friday's focus was again on the US, we had the Average Hourly Earning, Non-Farm Employment Change and their Unemployment Change. Non-Farm Employment change was hugely different from forecast, it came in over 100k above! It came in at 313k which should of created an insane dip however because of the Unemployment Change coming in 0.1% above forecast it seemed to counter this, which is fascinating. Average Hourly Earning was a little bit below forecast however because of the significant variation in the other too variables meant the consequences weren't felt. Worth watching were the BOJ Policy Rate, Monetary Statement and Press Conference, however again, we saw little effect because the Rate was bang of forecast.
This week has been interesting as always, but as a result of many political factors the variation of Gold in the market this week has been so hard to predict. But who knows what this could hold, maybe we will see further declines of 'war' talks between the US and Korea ease pushing the precious metal below $1300.
Peace.
The Naive Trader.
Forex Factory, 2018
IG.com, 2018
Investing.com, 2018
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