Gold fell sharply yesterday afternoon after the release of a far stronger than expected ISM reading, the price dropping as low as 1365 before recovering slightly overnight. Gold looks vulnerable to further falls in the near term, though we do not expect the price to fall below 1350.
The market will today be focussed on the Non Farms Payroll (NFP) number, with a strong number confirming a start to QE tapering this month as a certainty.
It is our view that this is already priced into gold and a strong jobs number will have little impact on the price. A weak number may cast doubt on tapering so early and this would give gold a boost, albeit a temporary one.
The dollar continues to show signs of recovery that may cap gains in the yellow metal, though the prospect of military action in Syria remains an underlying bullish factor for gold and oil irrespective of this.
Equities remain flat after a recent sell off, with participants focussed on the NFP data released at 1.30pm UK time.
Today's video looks at the recent trading in more detail and our thoughts for the trading over the next few weeks.
The market will today be focussed on the Non Farms Payroll (NFP) number, with a strong number confirming a start to QE tapering this month as a certainty.
It is our view that this is already priced into gold and a strong jobs number will have little impact on the price. A weak number may cast doubt on tapering so early and this would give gold a boost, albeit a temporary one.
The dollar continues to show signs of recovery that may cap gains in the yellow metal, though the prospect of military action in Syria remains an underlying bullish factor for gold and oil irrespective of this.
Equities remain flat after a recent sell off, with participants focussed on the NFP data released at 1.30pm UK time.
Today's video looks at the recent trading in more detail and our thoughts for the trading over the next few weeks.