Hi guys. We have been absent for a few weeks but are now back. Taking a quick look at Gold post ADP.
Clearly we can see that the dollar has regained some strength after the outflows into Yen and Euro during the Greek crisis (June/July/early August). It should be noted that there have been murmurings of further QE to be undertaken by the ECB. At this stage they are simply murmurings, however. This could potentially mean divergence between US and EU monetary policies which could cause dollar strength in the coming months and possible flows out of Gold as investors look to a stronger US economy (remember, whatever Yellen would have to say and the data coming out of the US would be dependent on this strength).
Although a slight miss on the ADP figure today (190k act. vs 200k expected) the dollar has kept relative strength. Friday will be a big day.
For Gold to bring in fresh buyers, I would be looking at a breach of the $1159-65 level, but at this stage that looks rather unlikely. In addition, the point of control on the H4 chart is down towards 1095.74. I would not expect to reach this level, however at this stage the downside is much more exposed than the upside.
Form your own opinions.
Not to be taken as investment advice.
Clearly we can see that the dollar has regained some strength after the outflows into Yen and Euro during the Greek crisis (June/July/early August). It should be noted that there have been murmurings of further QE to be undertaken by the ECB. At this stage they are simply murmurings, however. This could potentially mean divergence between US and EU monetary policies which could cause dollar strength in the coming months and possible flows out of Gold as investors look to a stronger US economy (remember, whatever Yellen would have to say and the data coming out of the US would be dependent on this strength).
Although a slight miss on the ADP figure today (190k act. vs 200k expected) the dollar has kept relative strength. Friday will be a big day.
For Gold to bring in fresh buyers, I would be looking at a breach of the $1159-65 level, but at this stage that looks rather unlikely. In addition, the point of control on the H4 chart is down towards 1095.74. I would not expect to reach this level, however at this stage the downside is much more exposed than the upside.
Form your own opinions.
Not to be taken as investment advice.