Trump's Decision.
This has been an interesting week for Gold, actually slightly rebounding and holding above $1300. Which I am pretty surprised about, so lets have a look and what may have caused the movement we have seen this week.
Monday's main focus was on the G20 Meeting, we saw the main sector of this was based on the lack of regulation for crypto-curriences, which is very good for that fast growing sector. Yet apart from this, information which could effect the Gold market were minimal. This meant on Monday we saw quite a lot of volatility however the precious metal did rise, gaining around $4 throughout the day to close at $1316.
Tuesday was another fairly uneventful day, we saw the main focus once again on the G20 but we also had the UK's yearly CPI. But for this to have any substantial influence over the Gold market we would of needed a 0.3%-0.4% variation from the forecast. Yet this wasn't witnessed, and actual came in just below forecast at 2.7%. I don't believe this had any effect and Tuesday retrace of Monday was in my opinion as a result of a rebound in the US Dollar causing the precious metal to dip, by close Gold had lost about $5 from open.
Wednesday has as expected been the busiest day of this week, as the most influential data was released. We had the US FOMC Economic Projection, FOMC Statement and their Federal Fund Rate, while later there was the FOMC Press Conference. The speculation surrounding the FOMC Statement put with the Fed increasing interest rates up to 1.75%, and the increase from China created some strong movement. This helped reduce the Dollar, allowing Gold to up-shift about $20 throughout the day, which is pretty impressive, closing at the $1330 mark.
Thursday has been pretty relaxed actually, small movement throughout the day. We saw a small dip for the precious metal, the release of the UK's Bank Rate was the main focus, we saw that the MPC Commitee voted 2-0-7, instead of 0-0-9. This produced a small amount of movement in the market, but as this isn't the major forex affecting the Gold market the consequences were limited, reducing any losses. Also on Thursday we had the US's weekly Unemployment Claims, which came in just above forecast by 4k at 229k, but as a result of the fairly small change the effect on the market were once again limited.
Friday in regards to releases is indeed quiet, our focus was on the US Core Durable Goods Orders m/m. This came in 0.7% above target at 1.2%, which should of caused quite a shift however because of the tariff wars brewing it completely altered the dynamics of the day. President Trump decided to slap China with a $50 trillion bill. This of course reduced all confidence in the US dollar, creating an impressive rise for the precious metal as a result, up to $1350, from $1330 at open.
Another week and again, political instability creates all the movement. As long as Trump is in power any direction is possible, which makes it especially hard to read what direction I believe Gold could take. Yet if you can play your cards right, there is as always money to be made.
Peace.
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
Investing.com, 2018
Monday's main focus was on the G20 Meeting, we saw the main sector of this was based on the lack of regulation for crypto-curriences, which is very good for that fast growing sector. Yet apart from this, information which could effect the Gold market were minimal. This meant on Monday we saw quite a lot of volatility however the precious metal did rise, gaining around $4 throughout the day to close at $1316.
Tuesday was another fairly uneventful day, we saw the main focus once again on the G20 but we also had the UK's yearly CPI. But for this to have any substantial influence over the Gold market we would of needed a 0.3%-0.4% variation from the forecast. Yet this wasn't witnessed, and actual came in just below forecast at 2.7%. I don't believe this had any effect and Tuesday retrace of Monday was in my opinion as a result of a rebound in the US Dollar causing the precious metal to dip, by close Gold had lost about $5 from open.
Wednesday has as expected been the busiest day of this week, as the most influential data was released. We had the US FOMC Economic Projection, FOMC Statement and their Federal Fund Rate, while later there was the FOMC Press Conference. The speculation surrounding the FOMC Statement put with the Fed increasing interest rates up to 1.75%, and the increase from China created some strong movement. This helped reduce the Dollar, allowing Gold to up-shift about $20 throughout the day, which is pretty impressive, closing at the $1330 mark.
Thursday has been pretty relaxed actually, small movement throughout the day. We saw a small dip for the precious metal, the release of the UK's Bank Rate was the main focus, we saw that the MPC Commitee voted 2-0-7, instead of 0-0-9. This produced a small amount of movement in the market, but as this isn't the major forex affecting the Gold market the consequences were limited, reducing any losses. Also on Thursday we had the US's weekly Unemployment Claims, which came in just above forecast by 4k at 229k, but as a result of the fairly small change the effect on the market were once again limited.
Friday in regards to releases is indeed quiet, our focus was on the US Core Durable Goods Orders m/m. This came in 0.7% above target at 1.2%, which should of caused quite a shift however because of the tariff wars brewing it completely altered the dynamics of the day. President Trump decided to slap China with a $50 trillion bill. This of course reduced all confidence in the US dollar, creating an impressive rise for the precious metal as a result, up to $1350, from $1330 at open.
Another week and again, political instability creates all the movement. As long as Trump is in power any direction is possible, which makes it especially hard to read what direction I believe Gold could take. Yet if you can play your cards right, there is as always money to be made.
Peace.
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
Investing.com, 2018
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