JICPT| Gold suffered massive sell-off in Asian session!
Hello everyone. The surprising strong job data released last Friday continue to weigh on the gold price in early Asian session.
On my way to the office, I checked the global market as usual, then I found gold penetrated 1750 level with no hesitation around 06:45 Beijing time. It was like a free fall, all the way down to the previous low around 1688. Then there are some buying pressure around that level to push the price away from the recently low. Now it recovered partial losses and still down by over 1.3%.
So what's next? Let's look at my favorite combo chart of NQ, US 10Y yield and Gold.
From the above chart, we can clearly see that gold price is really sensitive to the yield. The strong job data boost the yield to go high which resulted in the massive sell-off gold in Friday and early Monday by US/Europe and Asian traders respectively.
I would pay closed attention to 1750 which is the key level in my view. There are two possible scenarios as below:
1. Price couldn't conquer 1750 and sellers take control to push the price further down.
2. Price firmly closed above 1750 and accumulate momentum to challenge 1790. Once the two defense levels are conquered, 1835 will face the third try.
However, due to the strong job data, the first scenario is likely to happen. I would set the alert and see how pattern is formed then.
Market is becoming more volatile, something big might happen soon. Be careful and trade safe.
On my way to the office, I checked the global market as usual, then I found gold penetrated 1750 level with no hesitation around 06:45 Beijing time. It was like a free fall, all the way down to the previous low around 1688. Then there are some buying pressure around that level to push the price away from the recently low. Now it recovered partial losses and still down by over 1.3%.
So what's next? Let's look at my favorite combo chart of NQ, US 10Y yield and Gold.
From the above chart, we can clearly see that gold price is really sensitive to the yield. The strong job data boost the yield to go high which resulted in the massive sell-off gold in Friday and early Monday by US/Europe and Asian traders respectively.
I would pay closed attention to 1750 which is the key level in my view. There are two possible scenarios as below:
1. Price couldn't conquer 1750 and sellers take control to push the price further down.
2. Price firmly closed above 1750 and accumulate momentum to challenge 1790. Once the two defense levels are conquered, 1835 will face the third try.
However, due to the strong job data, the first scenario is likely to happen. I would set the alert and see how pattern is formed then.
Market is becoming more volatile, something big might happen soon. Be careful and trade safe.
Kommentar:
Sell pressure appears. The structure continues.
plan your trade and trade your plan
