XAU/USD UPDATE
Also refer to XAUUSD chart previously posted
Here
GOLD price Gapped up on Friday at 17.00GMT from 1299.460, , Which is the 'approximate' 50% retracement of the upmove that began on 15th Sept 2008 and ended 12th Sept 2011 . The current upmove began with a bounce up from the 200Ma
My belief is that the retest of the 50% fib subsequently triggered knee-jerk buy signals, hence the ‘inexplicable’ gap up from this particular level aided by cautionary buying into the weekend at a time when tensions are high in the Middle East together with other geo-political concerns around the globe, such as the Russia/Eastern Ukraine ‘issues’. However, at the time of writing, a cease fire is in place and has been extended by 4 hours and media reports suggest that
US Secretary of State John Kerry remains "confident progress can be made" on a seven-day truce that would "bring people together to create a more durable plan".
The August Gold Contract expires on Monday and the Federal Reserve begins a two day FOMC meeting with a policy announcement to follow, next Tuesday and Wednesday.
With recent US positive economic data, the gold price ‘should’ continue to decline, particularly as the market isn’t expecting to hear anything it is not already aware of from The FED Chair Janet Yellen.