As so often happens after a "knee jerk" reaction move, gold fully retraced Wednesday's GDP-fuelled price jump yesterday and is now trading around 1665, the area it was at before the GDP announcement.
The market is now focussed on the US jobs number, to be released at 1.30pm UK time. As one of the stated aims of the Fed is an unemployment rate of 6.5%, the jobs report has taken on even greater significance for gold, as an improving employment picture will signal an early end to quantitative easing - conversely a weak jobs number will suggest further stimulus or a continuance of the quantitative easing programme at least.
We commented yesterday that we were expecting a Wave C decline from 1683 and that appears to be what we are seeing. The market found support at 1657 yesterday, though the bounce since has been tepid and shallow - we therefore expect further declines before this ABC correction is over and a meaningful rally can begin.
We would ideally like to see a spike low and strong recovery - today's video looks at our targets for this spike low and our strategy for our next trade.
The market is now focussed on the US jobs number, to be released at 1.30pm UK time. As one of the stated aims of the Fed is an unemployment rate of 6.5%, the jobs report has taken on even greater significance for gold, as an improving employment picture will signal an early end to quantitative easing - conversely a weak jobs number will suggest further stimulus or a continuance of the quantitative easing programme at least.
We commented yesterday that we were expecting a Wave C decline from 1683 and that appears to be what we are seeing. The market found support at 1657 yesterday, though the bounce since has been tepid and shallow - we therefore expect further declines before this ABC correction is over and a meaningful rally can begin.
We would ideally like to see a spike low and strong recovery - today's video looks at our targets for this spike low and our strategy for our next trade.