The metal dips nearly 2% recorded the one day biggest decline since February 16. The bulls fail to hold the support zone between 1280.00 and 1277.00 results a drop of 20$ on Monday’s session. The brief dip post NFP extends the losses on the first trading day of brand new week.
Besides, the dollar index rose to 94.20, for the fifth consecutive day of gains – the highest since March, rising for the longest number of days. The import and export data in China is extremely disappointing by the market for the Fed is still on track to raise interest rates in 2016 and this is expected to support.
The latest CFTC data shows, gold hit a record high net long speculative positions, or suggest that short-term market near the top.
UBS analyst Carlos Tevez (Joni Teves) that “gold long positions has been high this year, we still maintain the previous view that gold will range consolidation. Dollar rally will continue to affect the rise in gold, this time also a seasonal slowdown during the gold ” reported by Gold headline.
What’s on today?
Traders focus China April CPI data and
FOMC Member Dudley Speaks and March JOLTS Job Openings
China CPI & PPI:
From SMH :
Mr Walton says China’s PPI Index – the change in the price of goods purchased and sold by producers – has been falling on a year-on-year basis for nearly two years.
“It’s going to be a negative industrial number this week,” said Mr Walton. “That’s the deflation that China is exporting to the rest of the world.”
As I am preparing the report, the metal re-fresh the low at 1259.00 rounded but rebounded immediately as the 20Dsma finds at 1257.00.
Trading support finds at 1257.00, 1255.00 and 1248.00
Resistance seems at 1265.00, 1270.00 and 1276.00
On the four-hour chart, 200sma finds at 1246.00 levels. Alternatively, strong resistance seems between 1270.00 and 1280.00 levels.
During Asian session, traders focus on China data .Buying momentum visible above 1265.00 towards 1267.50 and 1269.00 levels.