Direction, nar.

So lets see what has happened throughout this week and what directional movement we have seen. Monday was a quiet day for releases as expected, we did indeed have two FOMC Members speaking yet neither created much direction change. Much of Monday's fluctuations was as of a result of the the Trade discussions between the US and China about the trade deficits and surpluses either side is experiencing. This helped the precious metal gain ground during the morning period before dropping back quite substantially, by close on Monday Gold was sitting around $3 from open. Yup, not very exhilarating.

Tuesday was heavily influenced by the main man himself speaking in the evening, Mr Trump. The main focus of this was surrounding the Iran deal which he reportedly was going to 'withdraw from'. Something which produced significant reaction in markets, this was indeed positive for the precious metal, helping it hold fairly steady as the Dollar continued up to 'new highs of 2018'. This meant that gold closed the day actually just slightly above open at the $1315 mark.

Mid-week had more releases and more volatility for the precious metal, we saw a $10 swing on Wednesday as a result of gains in the Dollar and lower than expected US PPI m/m results. We saw PPI come in at 0.1% which was under forecast, and as a result of the importance of this we saw Gold regain much of the value it lost earlier in the day due to continued significant gains in the Dollar. By midday the precious metal was down to $1305 and I genuinely believed if we saw better than expected results in PPI it would dip below the $1300 mark, but I was indeed wrong. So we actually saw a substantial rebound in the afternoon and evening, hitting $1315 again!

Yet Thursday and Friday were real game changers for Gold's directional movement, gaining substantially during thursday's trading period. The US CPI m/m and core was released, and both were underwhelming, highlighting a slight dip in the US inflation levels. This in turn, caused Gold to gain some momentum during the day. This put with that fact the Dollar decided to take a a slight breather, allowed Mr yellow to shift for the biggest day of the week, hitting $1321 before closing just a little below after making $10 gains.

Closing the week we have a quieter day on Friday, holding around the upper $1315 region, yet a dip has been seen so it will be interesting to see whether it dips further. Releases have been underwhelming and thus nothing really worth mentioning, but it has been fascinating this week seeing how the precious metal has held itself. I really thought the Dollar gains would be no match for Gold and anything under $1300 looked imminent. Yet after Thursday's and Fridays regain's it may be holding within the $1320 region for the next week or so.

Peace.

The Naive Trader.

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