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6 Jan 2014
AU back on track?
FXstreet.com (London) - AU spot has seen one of the biggest daily fluctuations on just a one minute time frame on a delayed response to the US data; an indication that this may not have been simply a collective market reaction about any of the data, especially given the data hadn't been bullish.
The price action spells danger for the less committed bulls, however, AU has since moved back in line with ‘normal’ market price action and is trading again in correlation to the DMA’s. Spot is currently $1,242.33 albeit offering a low on the day of 1,214.89. US ISM data printed 53 vrs an expectation of 54.6 and below the previous 53.9 while factory orders came in line. The yellow metal remains supported n the Asian demand, a flat dollar and lower equities. Gold has rallied 2.7% since the beginning of the year following a terrible year in 2013 where the metal dropped 28% and was the worst annual performance since since 1982. The metal is going to be subject to yet further Us data and anything pointing towards a strengthening Us economy could threaten the markets apatite for investing into gold further.
The price action spells danger for the less committed bulls, however, AU has since moved back in line with ‘normal’ market price action and is trading again in correlation to the DMA’s. Spot is currently $1,242.33 albeit offering a low on the day of 1,214.89. US ISM data printed 53 vrs an expectation of 54.6 and below the previous 53.9 while factory orders came in line. The yellow metal remains supported n the Asian demand, a flat dollar and lower equities. Gold has rallied 2.7% since the beginning of the year following a terrible year in 2013 where the metal dropped 28% and was the worst annual performance since since 1982. The metal is going to be subject to yet further Us data and anything pointing towards a strengthening Us economy could threaten the markets apatite for investing into gold further.