What happened on Tuesday was that everyone was tired of waiting. Gold finally showed a trendy day with a wide range. The level of 1600 dollars was passed, and the day’s highs were above 1605 dollars per troy ounce.
What was the catalyst for the movement? Most likely an extra day off (on Monday, American markets were closed due to the holidays). The accumulated energy + new negative on the stock markets led to a rapid growth of yellow metal.
Chart of the Day – Gold
TFutures on American indices opened at night with a gap down. And that gap was not bought out. On the contrary, the price fell further down. This is a very important moment. If the gap is not closed by the end of this week, it is likely that last week formed the top of the price on the chart.
What was the source for the negative? In fact, we didn’t learn anything new this weekend. The number of people who got sick and died from the coronavirus is increasing. However, investors were just tired of this uncertainty, which was to explode at some point. That’s what we warned our subscribers about just a couple of days ago.
Our oil forecast from last newsletter didn’t work out. After the morning decline, oil was traditionally bought back at European and American sessions. However, the bulls could not push the price up further. We did not see a strong upward directed day completing the short-term oil bounce. But now there are 2 options. Either this directional day will happen or the oil price will slide down again. It is absolutely unclear who will buy black gold at this price to hold a position at least for a couple of weeks.
What awaits us today?
00.50 Orders for engineering products in Japan for December
10.30 UK Retail Price Index January
14.30 Canada Consumer Price Index Base for January
20.00 Minutes of the US Federal Reserve’s Open Market Committee Meeting
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