Gold

Today we focus on the euro. We will look at long and short term studies

A weaker dollar and reluctant buyers in the gold market faced off against one another today. The result is a narrowly higher price in gold.

Gold traders tend to enter a market (from either side) based on events.

The U.S. economy created 280,000 jobs in May, a stellar outcome after a weak late winter and early spring. Earlier employment data were also revised upward. Possibly more important and a harbinger of things to come, average hourly earnings rose by an extremely healthy 0.3 percent.

Traders, weighing up what tomorrow’s jobs report will bring in the U.S., were busy today squaring their positions. When in doubt, hedge. And there is plenty of doubt out there.

There are a host of reasons that explain the difficulty gold has had in the last two months, a battle that has grown more intense since May 26th.

If you know the enemy and you know yourself, your victory will not stand in doubt.

– Sun Tzu, The Art Of War

Welcome to this first preview of the "Trend Chartist. We want you to get a better idea of this new service we will offer starting next week. Please email me with any questions or interest. 

The euro zoomed up against the U.S. dollar at warp speed today on news that the rest of Europe and Greece would come to some sort of understanding concerning the Greek debt situation. The dollar is on track to experience its single biggest one-day loss since March.

We live in a world of Goldilocks data reports. Not too hot, not too cold, not quite “just right.” From our point of view, the economy is still lagging. (The key reason is lack of wage growth, which is breeding fear and resentment among American breadwinners.) This is a week during which we will be seeing many, many reports released that will give us a fairly firm idea of how the U.S.

With the U.S. dollar struggling today, seeking its own direction after a downward revision of GDP for the first quarter, gold has taken advantage and moved up in afternoon trading. For much of the day, the precious yellow metal was trading at just over even as the dollar slipped in the late morning.

Gold was also helped by an outside market today – namely crude oil.

The dollar retreated against the euro today, giving gold an almost $2.00 head start. Investors and traders, however, tripped up the yellow precious metal, so instead gold is up only 20 cents in late afternoon trading.