Monday, 27 January 2014

US Dollar and Gold in the Asian Market Scenario

Spot gold is currently trading at $1233, down by $3 from the preceding close. Nothing of significance has changed in the trend at once while the short-term bearishness is still in one piece, says Barry Sendach. He believes that the market may primarily trade down while it may linger to stay volatile later.

In the interim, the broken relationship between gold and euro is still intact, while both are believed to be trade down in the upcoming session. The US dollar, on the other hand, is continuing to trade down after the IMF’s prediction on global economy growth to rise from 3.60% to 3.70%. Focusing on the latest economic impact on gold, we come up with the Chinese HSBC Manufacturing index showing a trivial improvement owing to which Asian equities may trade higher. Hence, gold as an alternate asset class may prolong drifting down.

Barry Sendach, a Forex Trading Expert is of the opinion that these data might result in an insignificant improvement from the prior month, due to which the euro might turn volatile. And the impact of this transformation would be felt on gold prices.

Beholding the above factors and market scenario, we can draw to a conclusion that gold may initially be traded down, while a considerable amount of volatility would be observed. And hence we continue to propose momentary trades on gold.

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