We saw a quiet day of trading in gold yesterday with the price moving in a narrow range, however the forex markets saw a bit more action, with dovish statements from the ECB and Bank of England seeing the Pound and Euro collapse against the dollar.
The dollar strength did not translate into weakness in gold, which may be a sign of internal strength returning to gold, or more likely given the drop this morning, a symptom of the US markets being closed for Independence Day.
Oil continues to exhibit strength and the recent trend of strong equities, oil and the dollar and weak precious metals is still very much the prevailing pattern.
The closely watched Non Farms Payroll number, the most important data release of the month, comes at an unusual time in July, with many traders away from their desks due to the 4 July holiday. This may result in exaggerated volatility in the gold price due to the thin trading conditions so caution must be the key word today.
Today's video for subscribers looks at the recent trading in more detail and our thoughts on the NFP number released later today.
The dollar strength did not translate into weakness in gold, which may be a sign of internal strength returning to gold, or more likely given the drop this morning, a symptom of the US markets being closed for Independence Day.
Oil continues to exhibit strength and the recent trend of strong equities, oil and the dollar and weak precious metals is still very much the prevailing pattern.
The closely watched Non Farms Payroll number, the most important data release of the month, comes at an unusual time in July, with many traders away from their desks due to the 4 July holiday. This may result in exaggerated volatility in the gold price due to the thin trading conditions so caution must be the key word today.
Today's video for subscribers looks at the recent trading in more detail and our thoughts on the NFP number released later today.