Gold going for new yearly highs – NFPs a short-term brake pad?
In Monday's idea for
GOLD
we pointed out, that by " reconquering 1,310 USD into the start of the week, further gains up to 1,325 USD are to be expected. Still, we only see this level as a potential stop-over up to the current yearly highs of around 1,347 USD."
And in fact, the yellow metal went to 1,325 USD already on Monday with further gains up to 1,337 USD and trading in striking distance to the current yearly highs around 1,347 USD.
Those, who didn't trade the direct break above 1,310 are currently waiting for a pullback to happen where today's NFPs are a potential trigger event.
After the latest economic releases with the ISM Manufacturing and ADP data sets coming in lower than expected and FED chairman Powell opening the door for a potential rate cut on Tuesday, any positive NFP reading today (NFPs > 200k and Average Hourly Earnings (MoM) ≥ 0.3%) leaves Gold vulnerable to a short-term correction.
Even though we do not necessarily see Gold dropping over 1% on a solid NFP reading, a re-test of 1,325 USD or a little lower around 1,310 USD can be seriously considered a potential long-trigger targeting to anticipate a break to new yearly highs and an attack at the strong resistance zone around 1,360/370 USD.
In general, the bullish picture in Gold on a daily time-frame stays active as long as we trade above 1,266 USD.
Ready to start trading the live markets? Then open a free account with Admiral Markets - 8,000+ instruments to choose from, some of the market's tightest typical spreads, and the world's #1 multi-asset trading platform. admiralmarkets.com/start-trading/
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
GOLD
we pointed out, that by " reconquering 1,310 USD into the start of the week, further gains up to 1,325 USD are to be expected. Still, we only see this level as a potential stop-over up to the current yearly highs of around 1,347 USD." And in fact, the yellow metal went to 1,325 USD already on Monday with further gains up to 1,337 USD and trading in striking distance to the current yearly highs around 1,347 USD.
Those, who didn't trade the direct break above 1,310 are currently waiting for a pullback to happen where today's NFPs are a potential trigger event.
After the latest economic releases with the ISM Manufacturing and ADP data sets coming in lower than expected and FED chairman Powell opening the door for a potential rate cut on Tuesday, any positive NFP reading today (NFPs > 200k and Average Hourly Earnings (MoM) ≥ 0.3%) leaves Gold vulnerable to a short-term correction.
Even though we do not necessarily see Gold dropping over 1% on a solid NFP reading, a re-test of 1,325 USD or a little lower around 1,310 USD can be seriously considered a potential long-trigger targeting to anticipate a break to new yearly highs and an attack at the strong resistance zone around 1,360/370 USD.
In general, the bullish picture in Gold on a daily time-frame stays active as long as we trade above 1,266 USD.
Ready to start trading the live markets? Then open a free account with Admiral Markets - 8,000+ instruments to choose from, some of the market's tightest typical spreads, and the world's #1 multi-asset trading platform. admiralmarkets.com/start-trading/
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
