Market Overview:
On Friday the 7th of June, Gold fell sharply by over 4%.
During the London session we saw headlines that the People's Bank of China (PBOC) paused gold purchases to its reserves in May, ending a massive buying spree that ran for 18 months, according to Bloomberg. Gold dropped just after the headlines were published.
China’s central bank has been one of the biggest gold buyers for years, steadily stocking up bullion since 2022 amid rising geopolitical tensions. China held 72.80 million troy ounces of gold at the end of May, which remained constant from the end of April, the data showed. The value of China’s gold reserves increased to $170.96 billion at the end of May from $167.96 billion in April.
During the New York session we saw Gold drop again from the strong Non Farm Payroll (NFP) numbers. In contrast, the DXY rallied over 0.9% as a reaction to the numbers.
Current events unfolding:
US inflation data and the interest rate decision is due on Wednesday the 12th of June
It is very rare for inflation and interest rates data to be released in the same week.
Technicals:
Price continues to make lower lows and lower highs.
Price broke the resistance of 2358.00 only to reverse back lower creating a false breakout.
A retracement to or back above 2325.00 will offer more opportunities to sell.
My trade positioning:
I will continue to monitor price on Tuesday to possibly add to my sell positions above 2325.00 ahead of the US CPI, Interest Rate and Inflation Rate numbers release to speculate on the price reaction. I currently hold sells at 2358.00
On Friday the 7th of June, Gold fell sharply by over 4%.
During the London session we saw headlines that the People's Bank of China (PBOC) paused gold purchases to its reserves in May, ending a massive buying spree that ran for 18 months, according to Bloomberg. Gold dropped just after the headlines were published.
China’s central bank has been one of the biggest gold buyers for years, steadily stocking up bullion since 2022 amid rising geopolitical tensions. China held 72.80 million troy ounces of gold at the end of May, which remained constant from the end of April, the data showed. The value of China’s gold reserves increased to $170.96 billion at the end of May from $167.96 billion in April.
During the New York session we saw Gold drop again from the strong Non Farm Payroll (NFP) numbers. In contrast, the DXY rallied over 0.9% as a reaction to the numbers.
Current events unfolding:
US inflation data and the interest rate decision is due on Wednesday the 12th of June
It is very rare for inflation and interest rates data to be released in the same week.
Technicals:
Price continues to make lower lows and lower highs.
Price broke the resistance of 2358.00 only to reverse back lower creating a false breakout.
A retracement to or back above 2325.00 will offer more opportunities to sell.
My trade positioning:
I will continue to monitor price on Tuesday to possibly add to my sell positions above 2325.00 ahead of the US CPI, Interest Rate and Inflation Rate numbers release to speculate on the price reaction. I currently hold sells at 2358.00
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.