Technical analysis: The DX did approach the #101.900 but Gold remained more or less stationary on Hourly 4 chart, highlighting the strong Selling pressure it is under. Besides strong Selling Intra-day impulse, Gold found Buyers near #1,920’s many times which represents Higher High’s Lower zone where Institutional capital flew from Gold and Investors offloaded their Short-term Selling orders (as I announced many times), pushing Price-action once again towards #1,920’s, former multi-Month . Constant Hourly 4 chart’s spikes and move in general has no further room to go (according to my Technicals), so I don’t expect this consolidation to continue for more than #2-session horizon. My focus shifts to the PCE numbers and Fed repurchase agreement negotiations which are in final phase, aswell to the ties of Gold with Bond Yields and DX , where Gold is attempting to find a equilibrium between the two. This indeed is not a good sign for those who want to Buy this market (most of Traders will) as the more prominent area for Buyers to arise is likely around Hourly 4 chart’s #1,900.80 – #1,905.80 which is crucial re-Buy zone to rely on, having seen how well it held Price-action Lower or Higher in the past few weeks (current ). This is a cautious market at the moment. Once Gold stabilizes, #1,927.80 – #1,932.80 can be used as an re-Sell area towards #1,910’s and if invalidated, #1,900.80 psychological benchmark (#1,900’s became new #1,700’s since Price-action was strolling around #1,700’s for couple of Months). However if #1,942.80 breaks on the other side and market closes above, Buyers will expect a contact with #1,952.80 (former pressure point). In light of the analysis above, keeping my Stop-loss wide on the next order may be the better path to take at the moment and sustain current Stop-loss hunts by Institutional Traders. If market closes below #1,927.80, is invalidated to the downside as I can comfortably pursue #1,900.80 psychological benchmark with my Selling orders.
My position: Even though my usual Trading practice is to remain on sidelines throughout Friday’s session, I have engaged my Selling order with #1,928.80 as my entry point. My optimal Target remains #1,900.80 psychological benchmark as Buyer’s intent remains weakened. Market closing below #1,927.80 negates Buying bias and is adding credence to Gold’s Sellers.
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