Yen Will Drag Down Gold
Tim Knight | Jul 17, 2017 01:26PM ET
Gold has been bouncing higher for a little more than a week and my view is that, as it approaches its gap at $117.95, it will reverse lower. Whether it’ll reach the gap or not remains to be seen, but I shorted it Monday morning with a stop at $118.
Of aid to this trade would be a re-weakening Japanese yen, which I also see as having topped (note the broken trend line).
This will all probably be decided no later than Thursday morning, when the market has a chance to absorb all the news from Japan’s central bank. That “event’ dominates an otherwise very quiet week.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.