Under $1300?
So, this week has been interesting as we have seen the precious metal continue its decline. The fall was expected and I did believe we would of seen a bigger fall than what was actually witnessed throughout this week.
Monday saw almost a $10 dip in the value of Gold, falling as the Dollar continued its gains. In terms of releases, we had the US Core PCE Price Index which came in bang on forecast. At the same time the US also released their Personal Spending m/m releases, which like the PCE Index, came in bang on forecast creating little effect on the yellow metal. By close Gold was down to $1315 against the Dollar.
We saw the lowest prices of the week for Gold during Tuesday's trading period, which was as expected nothing to do with data releases but solely the US Dollars gains. Yet, further to this as a result of the Dollar going positive for the first time this year we saw even more of a decline in Gold! By mid-day the precious metal hit $1301 before rebounding and closing at $1305. We did have the US ISM Manufacturing Results, coming in below forecast which might of helped Gold stay above $1300 for the day.
Much of Wednesday's movement was based around the upcoming Fed meeting in the evening. The precious metal rose and after the meeting, gaining much needed ground against the Dollar in order to stay above $1300 for the week. By close Gold was sitting around the $1305 mark. US's ADP Non-Farm Employment Change was one of the big events of the day but results were underwhelming, coming in just above forecast. So because of this little actual change the effects on the Gold market were very limited.
Thursday's main focus was on the US's ISM Non-Manufacturing PMI and weekly Unemployment Claims. The ISM came in almost 2 index points under forecast at 56.8, while the Unemployment Claims was just over 10k below forecast. As a result of a lack of significant movement the consequences were limited but this put with a slight hold-back from the US Dollar allowed Gold to regain value during the day, closing the day around the $1312 point.
To finish the week we had three pretty events on Friday, these were the US: Unemployment rate, Non-farm employment change and Average Hourly Earning. The specific focus was on the Unemployment Rate, which came in under forecast at 4.0%. This is substantial and caused Gold to dip a little but Friday saw very limited directional movement with the precious metal now holding at $1314.
This week has shown just how vulnerable Gold is too strong directional movement in the US Dollar, I believe we might see further decline during the next week. But it does depend on whether the precious metal to hold above the $1300 mark.
Peace.
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
Investing.com, 2018.
Monday saw almost a $10 dip in the value of Gold, falling as the Dollar continued its gains. In terms of releases, we had the US Core PCE Price Index which came in bang on forecast. At the same time the US also released their Personal Spending m/m releases, which like the PCE Index, came in bang on forecast creating little effect on the yellow metal. By close Gold was down to $1315 against the Dollar.
We saw the lowest prices of the week for Gold during Tuesday's trading period, which was as expected nothing to do with data releases but solely the US Dollars gains. Yet, further to this as a result of the Dollar going positive for the first time this year we saw even more of a decline in Gold! By mid-day the precious metal hit $1301 before rebounding and closing at $1305. We did have the US ISM Manufacturing Results, coming in below forecast which might of helped Gold stay above $1300 for the day.
Much of Wednesday's movement was based around the upcoming Fed meeting in the evening. The precious metal rose and after the meeting, gaining much needed ground against the Dollar in order to stay above $1300 for the week. By close Gold was sitting around the $1305 mark. US's ADP Non-Farm Employment Change was one of the big events of the day but results were underwhelming, coming in just above forecast. So because of this little actual change the effects on the Gold market were very limited.
Thursday's main focus was on the US's ISM Non-Manufacturing PMI and weekly Unemployment Claims. The ISM came in almost 2 index points under forecast at 56.8, while the Unemployment Claims was just over 10k below forecast. As a result of a lack of significant movement the consequences were limited but this put with a slight hold-back from the US Dollar allowed Gold to regain value during the day, closing the day around the $1312 point.
To finish the week we had three pretty events on Friday, these were the US: Unemployment rate, Non-farm employment change and Average Hourly Earning. The specific focus was on the Unemployment Rate, which came in under forecast at 4.0%. This is substantial and caused Gold to dip a little but Friday saw very limited directional movement with the precious metal now holding at $1314.
This week has shown just how vulnerable Gold is too strong directional movement in the US Dollar, I believe we might see further decline during the next week. But it does depend on whether the precious metal to hold above the $1300 mark.
Peace.
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
Investing.com, 2018.
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