The Retreat in Progress.
This week has seen a strong decline for Gold, nothing too surprising actually as the US Dollar continues to regain momentum. So lets have a look at some of the main influences on this directional shift.
Monday's open is the highest Gold has seen this week, this follows on from the trend that was first seen last week with Gold closing Friday of that week lower than open for the first time in a while. On Monday Gold fell around $8 as the US Dollar began to regain ground amid declining political tensions between the US and North Korea. By close Gold was down to $1325.
Tuesday saw a nice little retrace for the precious metal, gaining and hitting the $1330 mark during the middle of the day. What was surprising was how little influence the US CB Consumer Confidence positive result had on the Gold market, it came in over 2 index points above forecast, which is substantial. Yet the reaction from Gold as a consequence was limited and by close Gold was holding steady at the $1330 mark.
Mid-week now, and there isn't much to say in regards to the releases. Nothing on Wednesday was really expected to cause much impact on the yellow metal, but we saw a further fall for Gold as the US Dollar just continues its surge within the markets. I knew this regain from the US Dollar was coming but I wasn't certain when. Gold hitting the $1400 always seemed unlikely and now with the Dollar gaining further almost to 110 against the Yen it does make it seem as though Gold could be falling further, even below the $1300 before too long.
Thursday was another depressing days for any short-term holding bulls within the market. Gold fell below $1320 for the first time in a while. Mainly due to even more gains in the US Dollar!!!! We had the US Core Durable Goods Order, which was in 0.5% under forecast, big news which helped Gold hold above the $1320 mark for much of the day but when the Durable Goods Order came in 1% above forecast it really didn't help. By close Gold was down to $1317, a $6 fall since Thursday's open.
The final day of this week had the potential to be the busiest, we had a couple of fairly substantial releases in the US market. The Advance GDP was released, coming in 0.3% above forecast at 2.3%. This didn't do much to the Gold market, which once again surprised me! But further to this we had the tensions between the South and North of Korea reduce as both leaders met up to for the first time in history. These two big events should result in Gold dipping further, as investors move back to some of the major forex markets. But this didn't happen, something else is going on, and I guess it must of been the result of big put order or something similar, who knows.
Looking back at this week, and it hasn't been surprising. Gold's fall has been expected for the last few weeks as the Dollar slowly regains value. This put with declining tensions in Korea will only further dip the precious metal, could a dip below $1300 be witnessed next week?
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
Investing.com, 2018.
Monday's open is the highest Gold has seen this week, this follows on from the trend that was first seen last week with Gold closing Friday of that week lower than open for the first time in a while. On Monday Gold fell around $8 as the US Dollar began to regain ground amid declining political tensions between the US and North Korea. By close Gold was down to $1325.
Tuesday saw a nice little retrace for the precious metal, gaining and hitting the $1330 mark during the middle of the day. What was surprising was how little influence the US CB Consumer Confidence positive result had on the Gold market, it came in over 2 index points above forecast, which is substantial. Yet the reaction from Gold as a consequence was limited and by close Gold was holding steady at the $1330 mark.
Mid-week now, and there isn't much to say in regards to the releases. Nothing on Wednesday was really expected to cause much impact on the yellow metal, but we saw a further fall for Gold as the US Dollar just continues its surge within the markets. I knew this regain from the US Dollar was coming but I wasn't certain when. Gold hitting the $1400 always seemed unlikely and now with the Dollar gaining further almost to 110 against the Yen it does make it seem as though Gold could be falling further, even below the $1300 before too long.
Thursday was another depressing days for any short-term holding bulls within the market. Gold fell below $1320 for the first time in a while. Mainly due to even more gains in the US Dollar!!!! We had the US Core Durable Goods Order, which was in 0.5% under forecast, big news which helped Gold hold above the $1320 mark for much of the day but when the Durable Goods Order came in 1% above forecast it really didn't help. By close Gold was down to $1317, a $6 fall since Thursday's open.
The final day of this week had the potential to be the busiest, we had a couple of fairly substantial releases in the US market. The Advance GDP was released, coming in 0.3% above forecast at 2.3%. This didn't do much to the Gold market, which once again surprised me! But further to this we had the tensions between the South and North of Korea reduce as both leaders met up to for the first time in history. These two big events should result in Gold dipping further, as investors move back to some of the major forex markets. But this didn't happen, something else is going on, and I guess it must of been the result of big put order or something similar, who knows.
Looking back at this week, and it hasn't been surprising. Gold's fall has been expected for the last few weeks as the Dollar slowly regains value. This put with declining tensions in Korea will only further dip the precious metal, could a dip below $1300 be witnessed next week?
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
Investing.com, 2018.
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