After yet another quiet day of trading within a narrow range yesterday, gold is drifting slightly higher this morning, though we do not expect any movement of significance until the Non Farm Payrolls (NFP) data is released this afternoon.
The consensus is for an increase of 160,000 jobs in February and a reduction in the unemployment rate to 7.8%. A weak number will likely see gold shoot higher, as shorts will want to cover their positions, however a strong number may see gold plummet as the prospect of an end to Quantitative Easing looms into view.
We still feel that gold is near to an important bottom - there may be one last spike lower to flush out the remaining longs, though this is looking increasingly unlikely. If it is going to happen, the NFP number could the catalyst.
Conversely, a weak number will most likely be the spark that the longs are waiting for to propel gold higher and start the next rally leg up.
Oil continues to move higher from a solid support area, this should boost gold. The dollar's advance has been halted at the 82.5 level - a weak jobs number will likely see the dollar fall hard, whereas a strong number will probably push the dollar through this resistance area.
Today's video looks at the last week's trading and our thoughts on the NFP data release today.
The consensus is for an increase of 160,000 jobs in February and a reduction in the unemployment rate to 7.8%. A weak number will likely see gold shoot higher, as shorts will want to cover their positions, however a strong number may see gold plummet as the prospect of an end to Quantitative Easing looms into view.
We still feel that gold is near to an important bottom - there may be one last spike lower to flush out the remaining longs, though this is looking increasingly unlikely. If it is going to happen, the NFP number could the catalyst.
Conversely, a weak number will most likely be the spark that the longs are waiting for to propel gold higher and start the next rally leg up.
Oil continues to move higher from a solid support area, this should boost gold. The dollar's advance has been halted at the 82.5 level - a weak jobs number will likely see the dollar fall hard, whereas a strong number will probably push the dollar through this resistance area.
Today's video looks at the last week's trading and our thoughts on the NFP data release today.
