The gold price gained 7 dollars in the last hour before retracing somewhat. This is quite an impulsive rise if we consider that the London session has not yet begun. Look at this hourly chart:
Gold Hourly Chart
Not only did the gold price rise, but also the Japanese yen. Equity indices like the S&P 500 and the Dax are moving lower. All of these movements correspond to a risk-off environment.
Of course, this pullback in risk sentiment could merely be temporal. Most likely it won’t be a trend reversal.
It looks like the market is nervous about the important speeches we have later in the day. First, we have the ECB’s Mario Draghi in less than an hour. Then we have Mark Carney of the BOE at 10:00 GMT and at 17:00 Janet Yellen of the FED.
Keep an eye on these event risks. I don’t trust the sudden bounce in the yen and gold. Neither do I think the dip in the S&P 500 will last. Let’s see what happens today. With all these important speeches you never know.
Good luck guys! And be careful.
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