Asian markets are significantly lower this morning and lending a softer tone to the opening calls on the European exchanges. The Hang Seng and Nikkei225 are closing 386 and 92 points lower respectively whilst opening calls for the FTSE and DAX see those markets lower by 26 and 44 points.
GOLD has been particularly volatile overnight trading up to 1438, back down to 1421 in the last hour of trading and currently in the middle of that range at 1430. Unfortunately that sees me stopped out on yesterdays, small trades but as I mentioned in yesterdays trade review session, I expect us to hit significant resistance in this area. I would be looking for a close substantially above 1426 before changing my approach to GOLD. We have rallied hard and fast since 1319 and in the absence of a significantly higher close than 1426 will continue to trade from the short side.
Both sterling and the euro are edging higher after good gains yesterday but I am looking for 20 pips above the next figure before shorting the market, 1.2820 and 1,1420. Little bit of patience required here and the trade will be either GOLD or the currencies, not both.
Trade War concerns continue to worry the market and I believe that a correction is due in both the DOW and GOLD. To that end I have sold both as a paired trade this morning