Digital Markets Advisor proved correct regarding its Gold signal. The precious metal now goes into the weekend trading near 1228.00 USD and will certainly see some interesting tests next week.
The EUR and GBP both started to get support versus the Greenback in the last couple of days. After a steep sell off both major currencies have found takers at critical support ratios.
China will provide Industrial Production in a few hours which should lead to interesting trading in Asia when FX and equity bourses begin trading on early Monday.
Geo-politics will loom large this coming week in forex with the Scotland independence referendum vote scheduled to take place on the 18th of September, this coming Thursday.
It seems unlikely that Scotland will vote for independence, but ‘yes’ voters have certainly began to find some momentum in recent polling and the results from them suggest that the vote will be closer than imagined only a few short weeks ago.
Data from the U.S. earlier today, Friday, showed lackluster gains in the retail sector. Wall Street once again turned in cautious results as it shows signs of struggling at these highly valued heights. Crude Oil continues to show weakness and demand seems to certainly be in doubt. However traders must be aware that even with recession like numbers coming from Europe, Asia, and the less than overwhelming results from the U.S. that the energy sector is about to go into fall and winter months with political tensions rather high in certain important oil and natural gas producers backyards. Prices look low and in the short-term may stay that way, but traders need to choose wisely.
As Gold stumbles and becomes cheaper, speculators are certainly taking longer glances. However traders need to remember that the metal has been in a well documented slump for the past two years, this as investors have shown that they do not exactly fear inflation. Commodities are bound to get plenty of bottom seekers, but have the deepest depths been seen?
The final couple of trading weeks of September are setting themselves up for volatility it would appear.