After rocketing up $72 from the dismal NFP number, gold has trotted in place for the last two days forming an ii pattern (or a double inside bar pattern). Although we are at a key resistance area between $1622-1627, considering the weak bearish reaction at this level, we are anticipating an eventual breakout for further gains in the precious metal.
Considering the Chinese have been scooping up massive amounts of gold in the last quarter, along with possible monetary easing out of the BOJ, ECB and Fed, gold is our safe haven of choice. Thus, we will look to either buy on a breakout pullback setup above the key resistance area, or look for price action triggers on a pullback towards $1600 for an eventual break of $1627, attacking $1665 in the near-term.
Don’t forget the ECB has a rate decision tomorrow which should make EUR/USD movements interesting to say the least.
Global Market Commentary
Spain finally caved in today announcing they have been shut out of the credit markets causing German bond prices to fall further and putting more pressure on the euro. Basically Spanish yields became too much for the EZ’s 4th largest economy and they are now begging the EU to help capitalize their banks.
Personally, this trader does not think there is enough €’s to save Spain which could be over €300B to rescue them over the next year. Germany has become the lender of last resort but the pressure is mounting on them as their own economy and taxpayers are funding these bailouts. Again, if Spain goes, there will not be anything to contain the fallout.
Meanwhile the Dow closed marginally up by 26.5pts or .22% while the S&P gained 7pts or .57%
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Gold Forms Double Inside Bar Pattern. More Upside?
Published 06/06/2012, 04:41 AM
Updated 05/14/2017, 06:45 AM
Gold Forms Double Inside Bar Pattern. More Upside?
Gold
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.