By: Mike Hammer
Gold prices dipped Friday morning ahead of the monthly jobs report. GLD, our unleveraged EFT for gold, opened almost a full percentage point down from Thursday’s close in New York trading. This is due in part to a rising dollar, which has been bouncing in oversold territory for over a week now. Here’s the 3-month chart of UUP showing the dollar’s decline relative to a “standard basket” of foreign currencies.
This chart includes the first few minutes of trading today. From that, we can see that the initial bounce is basically up to the recent resistance level. Only time will tell if it keeps going.
And if it does, we can expect even less investor interest in gold in the short term, which will lead to further declines in our favorite yellow metal. So sit back, buckle in, review your downside trading strategies, and let’s see what comes our way next week.
Sincerely, The Gold Enthusiast
Disclosure: The author has no positions in any mentioned security. The author is long NUGT and JNUG, and may day-trade these positions in the next 48 hours.