Gold/USDollar XAUUSD It's all about the dollar for now
Sometimes gold is a fabulous market to trade - when it gets itself in a trend that traders can see glinting at them off their
screens the impulse waves it goes on to form are some of the best in any market (except Brent Crude which wins top spot
for powerful, tradeable impulse waves, see today's comment)Right now is not one of those golden moments. Gold
is a really difficult, choppy market, great for day traders but not so good for swingers. The first point is to recognise that
with no real wave to power it gold is consequently aimless, taking a random walk on a northward bearing and very much
against its will, judging by the pin bars studding the uncertain zone between the 3 blue lines on the chart. It's now powered
from underneath by ongoing dollar weakness from here, (see DXY comment today). You can see from the chart that gold
doesn't really want to go up, that traders are pretty bearish, or certainly were until DXY fell out of bed in London this
morning...But DXY is already testing the first target at 93.99 after a low at 93.97 and should make a feeble rally (as per
comment) before falling away again. Once 93.97 gives way on DXY It should fall to to 92.6 at least, so another 1.5% from
here. Look to buy dips in gold (and if you're experienced you'll already be using DXY chart as confirmation of when to
distribute and when to accumulate) because with at least 1.5% and quite possibly 3% to come in dollar weakness gold
will keep defying the bears over the next few weeks. It's on support right now at 1278 and unlikely now to dip much
lower. Only on a break below the trend line supporting the recent lows will the underlying resilience of gold be shattered
- a fabulous downtrend should re-emerge as a consequence, driving price down to 1205. But until that happens, it's tricky.
No trend except a seemingly grudging reaction upwards to dollar weakness. Go with it for now. No point in fighting this yet.
And if you're looking to trade a trending market right now, try Brent (or check today's comment).
They don't call it sweet crude for nothing.
Sometimes gold is a fabulous market to trade - when it gets itself in a trend that traders can see glinting at them off their
screens the impulse waves it goes on to form are some of the best in any market (except Brent Crude which wins top spot
for powerful, tradeable impulse waves, see today's comment)Right now is not one of those golden moments. Gold
is a really difficult, choppy market, great for day traders but not so good for swingers. The first point is to recognise that
with no real wave to power it gold is consequently aimless, taking a random walk on a northward bearing and very much
against its will, judging by the pin bars studding the uncertain zone between the 3 blue lines on the chart. It's now powered
from underneath by ongoing dollar weakness from here, (see DXY comment today). You can see from the chart that gold
doesn't really want to go up, that traders are pretty bearish, or certainly were until DXY fell out of bed in London this
morning...But DXY is already testing the first target at 93.99 after a low at 93.97 and should make a feeble rally (as per
comment) before falling away again. Once 93.97 gives way on DXY It should fall to to 92.6 at least, so another 1.5% from
here. Look to buy dips in gold (and if you're experienced you'll already be using DXY chart as confirmation of when to
distribute and when to accumulate) because with at least 1.5% and quite possibly 3% to come in dollar weakness gold
will keep defying the bears over the next few weeks. It's on support right now at 1278 and unlikely now to dip much
lower. Only on a break below the trend line supporting the recent lows will the underlying resilience of gold be shattered
- a fabulous downtrend should re-emerge as a consequence, driving price down to 1205. But until that happens, it's tricky.
No trend except a seemingly grudging reaction upwards to dollar weakness. Go with it for now. No point in fighting this yet.
And if you're looking to trade a trending market right now, try Brent (or check today's comment).
They don't call it sweet crude for nothing.