Analysis and Recommendations: December Comex Gold futures closed higher despite the strong recovery in the U.S. Dollar. The current rally began when the
Analysis and Recommendations: December Comex Gold futures closed higher despite the strong recovery in the U.S. Dollar. The current rally began when the dollar began selling off earlier in the week. On Thursday, the dollar was boosted by better-than-expected weekly unemployment numbers.
Generally oversold conditions, which led to aggressive short-covering and the dovish Fed minutes are the catalysts behind this week’s strength in gold. On Wednesday, the Fed minutes revealed its concerns about the weakening global economy and the strength of the dollar.
The current rally in gold is not likely to last because of low global inflation. New shorts are likely to come in if gold reaches a major retracement zone at $1253.80 to $1270.40.
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Today’s Economic Releases
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EUR French Industrial Production -0.2% 0.2%
GBP Trade Balance -9.6B -10.2B
CAD Employment Change 18.7K -11.0K
CAD Unemployment Rate 7.0% 7.0%
USD Import Prices m/m -0.5% -0.9%
USD FOMC Member Plosser Speaks
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CAD BOC Business Outlook Survey
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USD FOMC Member Fisher Speaks
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.