Gold sold off steadily yesterday as the ABC correction from the 1434 high continues to unfold as predicted. The gold price is currently 1388 as the market participants focus on the ADP employment data released today and the crucial Non Farms Payroll number tomorrow.
A weak number will give gold a boost, though a strong number will confirm the start of tapering in September which would be bearish for gold.
However, it is clear that September tapering is already largely priced into gold and we may see a "sell the rumour, buy the news" effect when the FOMC announce their plans following their September meeting.
Equities have stabilised following recent weakness and look to be gearing up for another rally leg. This would be bearish for gold, as would renewed dollar strength which looks more likely now that the dollar appears to have bottomed and is finally moving higher again.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
A weak number will give gold a boost, though a strong number will confirm the start of tapering in September which would be bearish for gold.
However, it is clear that September tapering is already largely priced into gold and we may see a "sell the rumour, buy the news" effect when the FOMC announce their plans following their September meeting.
Equities have stabilised following recent weakness and look to be gearing up for another rally leg. This would be bearish for gold, as would renewed dollar strength which looks more likely now that the dollar appears to have bottomed and is finally moving higher again.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.