After a quiet day of trading yesterday, gold is drifting lower this morning as market participants await firstly the FOMC meeting tomorrow and the Non Farms Payroll (NFP) number on Friday.
In a packed week of data releases, we can also look forward to US GDP, Chicago PMI, ISM, inflation and personal spending data over the next few days.
Gold is struggling to overcome the important 50 DMA and break out of the down trend channel that has propelled the price lower since April - we expect to see some movement this week due to the above data releases and events, with the likelihood of a continuation of the down trend our favoured scenario.
Equities remain strong and oil is holding gains above $100 a barrel - the dollar is stabilising just below 82 and looks ready to move higher again this week. We believe this will be the catalyst for gold moving lower again and may be instigated by the FOMC statement tomorrow evening. Any suggestion that tapering is pencilled in for September will see the dollar surge higher.
Today's video for subscribers looks at the recent trading and signs that we can use to predict the next move in gold.
In a packed week of data releases, we can also look forward to US GDP, Chicago PMI, ISM, inflation and personal spending data over the next few days.
Gold is struggling to overcome the important 50 DMA and break out of the down trend channel that has propelled the price lower since April - we expect to see some movement this week due to the above data releases and events, with the likelihood of a continuation of the down trend our favoured scenario.
Equities remain strong and oil is holding gains above $100 a barrel - the dollar is stabilising just below 82 and looks ready to move higher again this week. We believe this will be the catalyst for gold moving lower again and may be instigated by the FOMC statement tomorrow evening. Any suggestion that tapering is pencilled in for September will see the dollar surge higher.
Today's video for subscribers looks at the recent trading and signs that we can use to predict the next move in gold.