Gold 1797,815
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EURUSD 1,1962
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DJIA 31051,50
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OIL.WTI 56,685
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DAX 14052
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The second part of the article on the battle of the hamsters vs Wall Street, promised yesterday, will be moved to Monday. On Thursday there was a more important event for traders in the forex market.
Gold
Remember the picture above? We already gave it about a week ago. You can see a narrowing triangle on the chart. On Wednesday, gold prices broke through the triangle downwards. And the price of the gold metal fell sharply.
Why did this happen? Is there something wrong with gold? No! Something is wrong with the second ticker in the dollar/gold pair, namely the US dollar. It continues its rapid rise against most of the world’s currencies. The 2 most important levels were broken yesterday. 1.20 for the Euro/Dollar pair. And 0.9 for the USD/CHF pair.
A couple of days ago we drew our subscribers’ attention to a new factor that will push the American currency up. An earlier unwinding of US stimulus measures and a rise in interest rates. With this development, the yellow metal becomes the first contender for a fall.
Is it necessary to run out and sell gold urgently?
So far there is no evidence that the dollar reversal trend has taken on a long-term character. What will be important during the next 2 trading days is whether EUR/USD will hold below 1.20 and also whether gold will hold below the lower boundary of the triangle.
Break-down of EUR/USD at the level of 1.15 will be a medium-term confirmation of the trend change. From here, nobody will wait for the levels of 1.30-1.35, which were called by the experts as a target for the end of 2021.
Therefore, getting rid of gold is definitely not a good idea. The main thing is to understand the only risk (expectation of an earlier increase of interest rates in the USA), which might lead to a decline.
14.30 US non-farm payrolls for January
14.30 US Unemployment Rate for January
14.30 Canada January unemployment
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