Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.
Weekly Gold Report (April 8th through April 12th)
After the worst weekly decline of the year in US equities, we are slowly on the mend as we enter a week full of FED activity.
A few standouts from last week included a terrible Non Farm Payroll number on Friday and a full throttle campaign from the BOJ to continue to crush the Yen. Fridays jobs number was a big miss as 88,000 jobs were added and some real numbers regarding the drop in individuals that are actively looking for jobs was revealed. Even after these figures were announced, the stock indexes were only rattled for a short period of time before the realization that the FED will step up Quantitative Easing set back in. Since then, the stock market seems to be holding up fairly well.
The Japanese Yen had a wild week last week after the BOJ doubled down on its asset purchase program and effectively wiped out two week’s worth of recovery, and more. I think it will be interesting to see how the Yen responds to this weeks FOMC announcement that will be held on Wednesday.
The week ahead of us may be tricky as Wednesday’s Interest Rate decision looms. Traders will be less concerned about the actual rate decision, and will focus on the language used by Bernanke and other FED members throughout the week. The standout will be Bernanke’s view on the amount and the length of time the FED plans to participate in easing the market. Keep in mind that in last month’s report, the FED maintained its focus on the labor market and we also saw a less divided FED panel on the length of Quantitative Easing. After a big miss in the Non Farm Payroll, it would be difficult to expect anything but a more aggressive campaign to keep Interest Rates row in an effort to stimulate growth. After Wednesdays news, the markets will begin to use this information along with first quarter earnings and Fridays Retail Sales and Consumer Confidence numbers. Overall, this week should be very active for the US markets as well as commodities like Gold. The question for Gold prices is whether last week’s drop to test last Summers low is actually the low. I think after Wednesday, we should have the information necessary to make a confident decision.
The chart shows last week’s test of support, which will continue to be the focal point as Wednesdays FOMC announcement comes to pass.
Thank you for your interest,
Brian Booth
Senior Market Strategist
bb****@lo*************.com
888.272.6926
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Considering Technical view on Gold, it may form a High around or between 10th to 12 April, this higher level will be a very strong Resistance for rest of period, at list, up-to month-end. Further, if it downs from the low of above such high price date range, sharp downtrend can not be ruled out, and also possibilities to creak 1550 mark too.
thought you'd like these. Regards Walt
I think the price of gold for this week, it will still stuck at the level of 1600, seen from the monthly trend of gold strong down trend, while the weekly trend, showing an increase of symptoms, my conclusion this week the gold price will consolidate between the range 1617 to 1540, assuming the low penetrating , likely prices will continue to slump...
Everything hinges on the question ... Will JP Morgan be the seller of every buy..