GOLD price Gapped up on Friday at 17.00GMT from 1299.460, [visible on some charts but not on TV], Which is the 'approximate' 50% retracement of the upmove that began on 15th Sept 2008 and ended 12th Sept 2011 [Red Line]. The current upmove [on H1 Chart] began with a bounce up from the 200Ma [on daily chart] [Dotted Red Line = Position of 200Ma On DAILY XAU/USD chart]
My belief is that the retest of the 50% fib subsequently triggered knee-jerk [possibly algo inspired] 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 [Quote] 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 [very] 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.
Comments
HenryChen
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I couldn't agree more seeing the recent news of the cease fire agreement between those two countries, I think we can see a gap in price at market open on Monday. Perhaps we might seen price goes and retest the 1310 -1313 area before continue its next downward movement.
If it is goes as expected, my closest target will be at around 1278 -1280 area. What do you think?
If it is goes as expected, my closest target will be at around 1278 -1280 area. What do you think?