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GoldFix: Clean Energy Contradiction

Welcome. GoldFix is original content. The goal is to give you, the reader, some basis for looking at markets as you prepare your own trading day. Second, it aims to give you more tools, or at least the basis for developing your own tools to navigate markets. To that end we expect there will be changes based on feedback. Gold is the jumping off point for analysis.

Aug 12, 2021
Good Morning. The DX is slightly higher. Bonds are little changed as are US Stocks. Gold is slightly softer as is Silver. Energies are also offered down some. Only Copper is firmer so far. With the exception of Dogecoin, most Crypto is lower also.
Markets are in narrow ranges this morning so far. Some things are emerging and on the horizon, possibly subduing enthusiasm. The Covid spread in China is now affecting the economy. Several central banks have indicated reversals towards tighter rate policy were coming. President Joe Biden’s $4.1 trillion economic agenda faces a difficult path through Congress. The final passage coincides with a debt ceiling debate almost certainly.
Yesterday: The moderation of used car prices in yesterday’s CPI lent support to some arguments about the temporary nature of the elevated price pressures. The CPI has yet to pick up the sharp rise in house prices, and rents and owner equivalent rents remain modest. President Biden weighed in and urged OPEC+ to make more oil available.
Many observers noted that President Biden’s remarks offered a stark contrast to his greener thrust about weaning America off carbon fuels earlier in the week. Some made their opinions known.
The impact on OPEC+ is likely minor at best, and Biden’s comments seemed to be playing to the home crowd which signaled some midterm election posturing.
Gold: Yesterday’s CPI came in almost exactly as expected. Additionally, the data was determined to show the transitory narrative of inflation was playing out. This reduced any anxiety about a quicker, more violent tapering of stimulus. The Dollar softened and this put a bid into Gold. At first we saw short covering by specs who were looking for another very strong CPI. The market stabilized up around $1743 and re-rallied to $1758 before backing off and flat-lining at $1754. Silver did not do as well. Today’s data not withstanding, Gold looks to be weathering a very tumultuous week well.
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can there be a less bearish candle in Gold? https://t.co/S8srcG7ZWv
On Deck: This morning’s weekly initial jobless claims number is expected to show a small improvement to 375,000. The U.S. July PPI accompanies claims data at 8:30 a.m. The latest WASDE report from the Department of Agriculture is at 12:00 p.m. Turkey, Mexico and Peru all have central bank rate decisions today. OPEC publishes its monthly oil market report. Walt Disney Co., Airbnb Inc., and DoorDash Inc. are among the companies announcing results.- Bloomberg
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Gold Technicals
The following are excerpts from Moor Analytics Technical Reports posted here with permission and not actionable out of full report context.
Upside: Get long above $1,7508-46. If we break above here and back below, look for pressure to come in. Sell against $1,771.5 (-1.2 tics per/hour starting at 8:20am).
Downside: Get short below $1,750.8-4.6. If we break below $1,735.2 and back above, look for short covering to come in.
That’s it, Good Luck
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