Weekly Gold Report (August 5th through August 9th)
Gold Knowledge & Tips by Pierre A Pienaar
Gold Chart of The Week
Dear Valuable Friend,
Each Week Longleaftrading.com will be providing you a chart of the week as analyzed
by Brian Booth. I hope that you enjoy and learn from this analysis.
Weekly Gold Report (August 5th
through August 9th
I am probably not alone in thinking that I am happy to finally have last week in the rear
view mirror. Despite the fact that most economists had their sights set on the
September FOMC Meeting, there was still the possibility of a surprise decision to taper
ahead of next month. After hearing the news that the FED will maintain their QE stance,
we still had to deal with Central Bank announcements from the BOE and the ECB.
Following the same supportive outlook, we looked ahead to the monthly Non Farm
Payroll on Friday.
Despite decent figures from the private sector in the US, along with an improvement in
the weekly jobless claims, the NFP did miss expectations. Considering the fact that Ben
Bernanke and Co. have pegged their participation largely to the labor market, this miss
bought the market at least another month of FED support.
I don’t see much in this week’s scheduled news from the United States, but I am
interested in seeing figures later in the week from China. China will report CPI, PPI, and
Retail Sales in the second half of the week, and may have a decent impact on all
markets. It has been speculated lately that China is not as well off as they have reported
and if their numbers support that claim, we could see global markets affected overall.
The market that will have my attention the most after the figures from China are
released, is Gold. While Gold futures spent a few weeks grinding out higher prices since
late June, the market consolidated and slowly moved lower last week. With all of the
Central Bank announcements, I truly expected at least a bit more volatility ahead of and
after the announcements. But Gold stayed relatively flat throughout the week.
It is being said that China has been purchasing and importing physical Gold at a very
fast pace lately and some speculate that this may be in anticipation of difficult times
ahead. Whenever economists are making assumptions about China and the health of
their economy, they tend to remain “on the fence” due to the fact that China always has
the potential to shock the market will much better than expected numbers. Some
speculate that their figures are even padded. The beauty is that they always try to keep
the markets guessing, and their economy represents a large percentage of the overall
I expect to see Gold choose a direction out of the consolidation seen on the daily chart of
the December Futures. While the futures prices broke the upward trend last week, there
is still some small hope that prices will hold the consolidation of the 50day (green) and
the 20day (black) simple moving averages. But I would only be interested in
recommending a position in this contract after we see the reaction of Gold after China’s
data is released. Until then, I expect a few more days of lackluster and rangy trading.
If you have any questions, please feel free to reach out to me directly. I can be reached
via email at email@example.com or by phone at (888) 272-6926.
Thank you for your interest,
Senior Market Strategist
Trade Gold Futures with Longleaf Trading
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Trade smart, not with Greed
Pierre A Pienaar
Pierre A Pienaar retired in 2011 from business.
I would like to share my passion, my interests, knowledge & experiences
in Forex, Options, Gold Investments, Futures, Stocks, Binary Options, Economics,
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