Gold surged up through the upper boundary of the triangle consolidation yesterday, however the move was entirely driven by a collapsing dollar (down 1.50 at one point) and as such can be viewed with suspicion.
After hitting a high of 1423 yesterday afternoon, gold has fallen back and is currently trading around 1410. We expect the market to be range bound until the release of the Non Farms Payroll (NFP) number at 1.30pm UK time.
The dollar is stabilising around 81.50 after yesterday's huge falls, though the failure to break above 84 is starting to look more significant.
Oil has risen to $95 a barrel, though the short term down trend remains intact until or unless we break $96 convincingly.
All eyes are on the NFP data release this afternoon - the "official" expectation is for 165-170k new jobs added, thoguh we suspect the "real" expectation is more like 150k. Any higher will be bearish for gold, and lower will be bullish.
Today's video for subscribers looks at the recent trading action in more detail.
After hitting a high of 1423 yesterday afternoon, gold has fallen back and is currently trading around 1410. We expect the market to be range bound until the release of the Non Farms Payroll (NFP) number at 1.30pm UK time.
The dollar is stabilising around 81.50 after yesterday's huge falls, though the failure to break above 84 is starting to look more significant.
Oil has risen to $95 a barrel, though the short term down trend remains intact until or unless we break $96 convincingly.
All eyes are on the NFP data release this afternoon - the "official" expectation is for 165-170k new jobs added, thoguh we suspect the "real" expectation is more like 150k. Any higher will be bearish for gold, and lower will be bullish.
Today's video for subscribers looks at the recent trading action in more detail.