Volatility again!
Right, so this week ended up being pretty interesting with Fridays drastic drop showing that anything can happen as Gold went below recent lows. This is something which I didn't see happening even when looking at the markets on Wednesday afternoon!
Monday was a quiet day as expected. Gold floated around a little, closing at the $1300 mark with no significant releases taking place. Tuesday did have a couple of events worth watching, we had the US's CPI and Core CPI monthly results but both were very similar to forecast and thus the effect on Gold was limited. The precious metal fell slightly throughout the day, closing at the $1294 mark.
Wednesday was the busiest day for releases, with five events worth watching in the US. We had their PPI m/m results which were above forecast at 0.5%. Then the Fed decided to lower interest rates from 2.0% down to 1.75%, and this is substantial news and put with other positive sentiment coming out of the FOMC projections and Press conference Gold regained some of the value it lost over the days before, closing just above $1300.
What is crazy in my opinion is that Thursday's two main releases ended up having the biggest influence on the market this week. We saw US's Core Retail Sales and Retail Sales come in both 0.4% above forecast at 0.9% and 0.8% respectively. This at the time had limited influence on the commodities market however Friday we saw this.
The precious metal dipped ridiculously, falling from a stable $1300 all the way below $1280, and to really emphasise this point, my opinion on Golds max low was at the $1281 mark and I did really see any chance of this happening!
But it did and damn it is hard to call exactly what caused this, as some people believe it was the delayed consequence of Thursday or Stock dip on Friday. This would of meant investors were reducing their risk in other equities so the buyers for the precious metal began falling causing this heavy dip in the market!
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
TradingView.com, 2018.
Monday was a quiet day as expected. Gold floated around a little, closing at the $1300 mark with no significant releases taking place. Tuesday did have a couple of events worth watching, we had the US's CPI and Core CPI monthly results but both were very similar to forecast and thus the effect on Gold was limited. The precious metal fell slightly throughout the day, closing at the $1294 mark.
Wednesday was the busiest day for releases, with five events worth watching in the US. We had their PPI m/m results which were above forecast at 0.5%. Then the Fed decided to lower interest rates from 2.0% down to 1.75%, and this is substantial news and put with other positive sentiment coming out of the FOMC projections and Press conference Gold regained some of the value it lost over the days before, closing just above $1300.
What is crazy in my opinion is that Thursday's two main releases ended up having the biggest influence on the market this week. We saw US's Core Retail Sales and Retail Sales come in both 0.4% above forecast at 0.9% and 0.8% respectively. This at the time had limited influence on the commodities market however Friday we saw this.
The precious metal dipped ridiculously, falling from a stable $1300 all the way below $1280, and to really emphasise this point, my opinion on Golds max low was at the $1281 mark and I did really see any chance of this happening!
But it did and damn it is hard to call exactly what caused this, as some people believe it was the delayed consequence of Thursday or Stock dip on Friday. This would of meant investors were reducing their risk in other equities so the buyers for the precious metal began falling causing this heavy dip in the market!
The Naive Trader.
Forex Factory, 2018.
IG.com, 2018.
TradingView.com, 2018.
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