05 Dec Thursday View

Expectation of gold getting lower after better than expected U.S. job data didn't quite work well and price bounced from USD 1211 to test a high of around USD 1251 before closing the day at USD 1243. As James Steel, chief precious metals analyst at HSBC said that the combination of short covering and light macro hedge fund buying may have helped lift the bullion market into positive territory after the ADP report. And according to Jonathan Jossen, Comex gold options floor trader, It's a new fiscal year for commodities funds, which are getting into the market in a very oversold market condition. Most commodities funds start their fiscal year on Dec 1.

Technically, yesterday's push was a strong one, today we are waiting to see if that energy sustains and pushes the price beyond USD 1250 level or fizzes out and drops to previous level.

There are some more economic data releases today and tomorrow which are worth keeping an eye at. Most importantly, the Fed is meeting on Dec 17-18. What will be the outcome on the QE will sure be one thing most of investors/traders will be waiting for.

Trade Happy, Trade Safe :)