|09-03-2009, 05:05 AM||#1|
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Gold Exploded Higher
charts that Gold had been forming a symmetrical triangle. Yesterday’s ackluster session in the U.S sent investors into Gold’s safe haven, sending the commodity dramatically higher. The move came following the ADP numbers and was driven higher throughout the session on back of the FOMC’s statement. According to ADP, the number of payrolls fell by 298k compared to a consensus of 250k. Even though the number was better than last month’s 360k, the markets were pricing in a better figure than the released result of 298k, therefore the indices dropped.
In addition, the FOMC minutes showed that the Fed now sees further signs of stability, mentioning that the overall spending of the economy is starting to steady out. Furthermore the minutes showed that the Fed is becoming more confident about economic growth and stated that the U.S economy should see positive growth in 2010. Despite the positive words from the statement, investors looked past the comments and focused on the last couple of days of trading. The September affect has so far lived up to its reputation sending the indices lower for the first week of the month.
The massive drop in equities and fear that private consumer spending will take too long to back up recent data, sent investors into Gold breaking its triangular pattern. From a technical point of view the commodity broke out on high volume as seen on the ETF below.
Read the full article at Dodjit.com
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