Gold Prices: Slipping Ahead of Jobs Report

Gold prices dipped Friday morning ahead of the monthly jobs report.  GLD, our unleveraged EFT for gold, opened almost a full percentage point down from Thursday’s close in New York trading. This is due in part to a rising dollar, which has been bouncing in oversold territory for over a week now. Here’s the 3-month chart of UUP showing the dollar’s decline relative to a “standard basket” of foreign currencies.

(credit Fidelity.com)

This chart includes the first few minutes of trading today. From that, we can see that the initial bounce is basically up to the recent resistance level. Only time will tell if it keeps going.

And if it does, we can expect even less investor interest in gold in the short term, which will lead to further declines in our favorite yellow metal. So sit back, buckle in, review your downside trading strategies, and let’s see what comes our way next week.

Sincerely, The Gold Enthusiast

Disclosure: The author has no positions in any mentioned security.  The author is long NUGT and JNUG, and may day-trade these positions in the next 48 hours.

Related: Gold Demand is Shifting in China and India. Here’s What You Need to Know. 

 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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