GOLD Could Make a Move Lower

Key Highlights

  • GOLD continued to struggle and following a nice bearish trend on the 4-hours timeframe.
  • Canadian Employment Change data released by the Statistics Canada will be one the most important releases today during the NY session.
  • Australian Home Loans released by the Australian Bureau of Statistics declined by 6.1% in May 2015, compared with the forecast of -3.5%.
  • Japanese Domestic Corporate Goods Price Index released by the Bank of Japan declined by 2.4%, more than the expectation of 2.3%.

GOLD Technical Analysis

GOLD prices after declining below $1150 managed to gain bids and traded higher. However, the upside was stalled around an important bearish trend line on the 4-hours chart. The price recently climbed to test the 76.4% Fib retracement level of the last drop from $1174 high to $1147 low.


However, there was a failure noted around the mentioned Fib level. A break above the highlighted trend line might open the doors for more upsides in the near term. Alternatively, a failure to move higher could ignite a downside reaction, which may perhaps take the price back towards the last low of $1147.

Australian Home Loans

Earlier during the Asian session, the Australian Home Loans report, which presents the number of home loans. It indicates the housing market trend in Australia was released by the Australian Bureau of Statistics. The forecast was lined up for a decrease of 3.5% in the home loans May 2015. However, the outcome missed the mark, as there was a decline of more than 6%. The report stated that “In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 4.4%”.

Moreover, the Australian investment lending for homes also registered a decline of 3.2%, compared with the last revised gain of 3%. These reports had almost no effect on the Aussie dollar, as it was seen trading higher versus the USD.

Canadian Employment Report

Today in Canada, there is a major event lined up, as the Employment Change, which is a measure of the change in the number of employed people in Canada will be released by the Statistics Canada. The forecast is slated for -10.0K in June 2015. If there is any kind of disappointment, we might witness a decline in the Canadian Dollar.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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