UK Gold Trading Experts
  • Home
  • Trade Like a Pro
  • Gold Blog
  • Subscriber Resources
  • Legal Stuff
    • User Agreement
  • Contact Us

Gold Market Update - 5th Jun

5/6/2013

0 Comments

 
Picture
Gold sold off steadily yesterday after failing to better Monday's high of 1417 overnight.  The price dipped as low as 1389 before recovering slightly to close around 1400 and this morning is trading around this level.

Gold is forming a triangle pattern on the 4 hour chart, with a series of lower highs and higher lows.  Triangles are consolidation patterns and usually resolve with a break in the direction of the prevailing trend.  Less often, they are reversal patterns and see a break in the opposite direction, though either way, the break out of the triangle should provide a significant trending move.

The odds therefore favour a break to the downside as the prevailing trend is clearly down - the apex of the triangle will arrive on Friday, so we will get a resolution one way or another on or before Friday.  Perhaps the release of the Non Farm Payrolls (NFP) number at 1.30pm UK time Friday will be the catalyst for the break, however in our opinion it is likely to occur before this.

There is a slew of data released today that could move the markets, including employment and productivity data,  factory orders and the Fed's Beige Book.

The dollar has stabilised above 82.50, a move higher will see gold under pressure again, whilst oil has moved higher, giving gold a boost.   

Equities sold off again yesterday, though appear to be attempting to form a base for the next rally leg.  Any renewed strength in stocks will put pressure on gold, as the diversion of funds away from gold into the stock market has been a bearish factor for the yellow metal in 2013.

Today's video for subscribers looks at the triangle pattern in more detail and our a discussion of our strategy for the NFP data release on Friday.

0 Comments



Leave a Reply.

    Old Posts

    August 2021
    July 2021
    June 2021
    May 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    March 2019
    January 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    July 2016
    March 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011

UK Gold Trading Experts (UKGTE) is a trading name of Drupac Limited, a company registered in England and Wales (company number 09167819) whose registered office is 1 St. Paul's Square, Birmingham, B3 1QU.