Gold Slips on Heavy Volume, Asia Stocks Edge Higher

Prime Minister Abe Now in Rough Waters

Earlier this morning the Manufacturing numbers came out from Japan and China and both handily beat expectations. The Nikkei and Topix Indexes opened with modest gains, while the Shanghai Shenzhen composite trickled down slightly. In Tokyo Japan’s Prime Minister Abe’s government was on the losing side of an important local election as a relatively unknown party snatched away the majority of seats. Prime Minister Abe’s party now seems to be in a weak position, especially with Japan’s national election coming up next year. The Yen hasn’t moved much early on, but it is still above the 112.00 level versus the U.S Dollar.

Both The Euro & Pound Shine

This week a batch of Purchasing Managers Index reports are due to be released from Europe and the U.K. This morning it will be Britain to be out of the gate first to publish their Manufacturing PMI data. In the last week both The Euro and Pound rallied nicely versus the U.S Dollar. And the Euro and Pound should be interesting to look at early this week considering the absence of volume in the US markets due to the US independence holiday coming up shortly. Last week European equities were mostly down as they paralleled the tentativeness that took place in other global markets.

Gold Volatility Spikes

Earlier this morning Gold spiked downwards on heavy volume and moved below the 1240.00 U.S Dollars an ounce level. Last week the precious metal was traded with speculation in mind. World central bank leaders comments about possible higher interest rates coming could be jolting fear and insecurity amongst Gold traders.

Yaron Mazor is a senior analyst at SuperTraderTV.

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