Gold Diggers Await Yellen – Can She Support Bullion?
Arslan Butt • 2 min read
FX junkies, yesterday our gold position stayed on track and it's floated in profit for a long time. That is until the US FOMC members and better than expected JOLTS job opening figures intervened.
The JOLTS job openings data for the month of June released with weaker than expected figures. It sank to 5.67 million as opposed to the forecasted 5.98 million readings. To make things even more severe for the dollar, the May data was revised from a previously recorded 6.04 million job opportunities for the 5.97 million, ultimately lowering the worth of the positive NFP.
After analyzing yesterday's JOLTS readings, I'm a bit curious about Fed Chair Janet Yellen's testimony today. Should we expect her to keep a dovish stance, like FOMC officials Brainard & Kashkari? I guess the answer is yes!
We need to wait and see the actual outcome at 14:00 (GMT) as Fed Chair Yellen is expected to testify on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington.
Forex Trade Signal – Plan
Today, I'm looking closely at the crucial trading level of $1218, as below this level gold has the potential to show us further selling until $1199. Whereas, above $1218, the gold may go for $1228.
Gold Bearish Channel – Daily Chart
Technically, the yellow metal is trading in a strong bearish trend since the first week of June. It is trading below 50 periods EMA on the bigger time frames. Want to make more profitable trading decisions? Read one of our Forex trading strategy articles on trading Moving Averages.
Make sure to pay attention to the bearish channel on the daily chart, which is extending a substantial support at $1207/4 and resistance at $1227. Today everything depends on the fundamentals. Keep checking for our latest updates and forex trading signals on gold.