9 Points profit as Gold breached the 1797,90 support
As response to Decembers Fed's meeting minutes, Gold broke the 1797,90 support and 9 Point profit was achieved.
Even though the Feds 15-16 December meeting minutes should have provided us with more information regarding faster interest rate hikes and faster asset tapering, neither of mentioned was clearly defined, showing the low strengthening of the economy, which mostly refers to the labour market.
Also, the Non-manufacturing PMI, which was published today, showed the actual reading of 62.00, not reaching near the predicted 66.90.
Gold Spot (XAUUSD), in the December and in the begging of Y2022, showed no correlation to DX, which traded in neutral rectangle during today and yesterday sessions. Gold found strong correlation with US10Y, which traded with big upswing (the Fed’s bond-buying program will be reduced at a faster pace than first outlined at the previous meeting in early November), and broke the 9-month high. Throughout today's session, Gold traded with major loses (-19.460).
As mentioned during my last commentary, the Gold market is pretty volatile at the moment, and I engaged my selling order only when h4 chart candle closed above previously mentioned 1797,90 support, pursuing the 1st support at 1787,90 and 1775,90 in aftermaths. Both DX and US10Y had good correlation with Gold, until it reached the 1787,90 support, when I closed my selling order, as DX and US10Y also found its support.
The only fundamental event left for this week is US Non-farm Payrolls, which measures the number of people employed during the previous month, excluding the farming industry, which I expect to be lower than expected (400K). The Gold will most probably regain its losses and reach back to 1800,90 psychological barrier, but I will most probably remain without position throughout tomorrow's session, as I will engage my buying order only if 1805,90 breaks.
Even though the Feds 15-16 December meeting minutes should have provided us with more information regarding faster interest rate hikes and faster asset tapering, neither of mentioned was clearly defined, showing the low strengthening of the economy, which mostly refers to the labour market.
Also, the Non-manufacturing PMI, which was published today, showed the actual reading of 62.00, not reaching near the predicted 66.90.
Gold Spot (XAUUSD), in the December and in the begging of Y2022, showed no correlation to DX, which traded in neutral rectangle during today and yesterday sessions. Gold found strong correlation with US10Y, which traded with big upswing (the Fed’s bond-buying program will be reduced at a faster pace than first outlined at the previous meeting in early November), and broke the 9-month high. Throughout today's session, Gold traded with major loses (-19.460).
As mentioned during my last commentary, the Gold market is pretty volatile at the moment, and I engaged my selling order only when h4 chart candle closed above previously mentioned 1797,90 support, pursuing the 1st support at 1787,90 and 1775,90 in aftermaths. Both DX and US10Y had good correlation with Gold, until it reached the 1787,90 support, when I closed my selling order, as DX and US10Y also found its support.
The only fundamental event left for this week is US Non-farm Payrolls, which measures the number of people employed during the previous month, excluding the farming industry, which I expect to be lower than expected (400K). The Gold will most probably regain its losses and reach back to 1800,90 psychological barrier, but I will most probably remain without position throughout tomorrow's session, as I will engage my buying order only if 1805,90 breaks.
