Gold Trader

June 2nd 2021

Gold breaking 1898.00 in early trade http://www.eightdragonscapital.com

Gold Technical Analysis

Gold recorded a six month high trade at 1916.40 yesterday, it was the peak since the low of 1676.00 in March.

Gold is believed to be a hedge for inflation. But it is not a hedge against higher US Interest rates.

The argument over US Inflation and interest rates will start to hot up this month, starting on Friday with Non Farm Payrolls for May. Then it will get really interesting with US CPI due for release on June 10.

Personally I don’t think we can really draw any conclusion for a few months yet. But a strong NFP and CPI will see US Bond Yields rise. With this rise in yields I expect the US Dollar to find some more support. However, I am sure that US Federal Reserve speakers will calm the markets with their Inflation is just transitory rhetoric.

Who do we believe the data or the speakers?

Right now Gold is finding support at 1896/1894. However if we can get a sustained break downwards, I would look for further probes of support at 1888 or 1882 in an extended move.

Resistance is now at 1903/1904, a break here would see another attempt at 1908/1909. or even 1912.00

There is no data released today that is likely to trouble the market and if you require any information on this post or would like to ask us anything please contact us at support@8dragonstrade.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: