Gold climbed substantially yesterday after worse than expected ADP employment data came out. Traders felt that this data was foreshadowing a worse than expected Nonfarm payrolls report for Friday and that the US recovery may not be strong enough for the Fed to continue tapering. To that end, Federal reserve Chairman Janet Yellen stated that the Fed was willing to whatever it takes to ensure a recovery in the US economy – a statement many took as dovish. Thus, there is a lot of bullish sentiment on gold. However, it is important to note that the yellow metal is retracing its gains from yesterday as speculators engage in profit taking before tomorrow’s employment data. Look for support at 1330 and resistance is at 1342.
March 6, 2014 – Commodities News
Hot Asset For Today: Gold
Gold climbed substantially yesterday after worse than expected ADP employment data came out. Traders felt that this data was foreshadowing a worse than expected Nonfarm payrolls report for Friday and that the US recovery may not be strong enough for the Fed to continue tapering. To that end, Federal reserve Chairman Janet Yellen stated that the Fed was willing to whatever it takes to ensure a recovery in the US economy – a statement many took as dovish. Thus, there is a lot of bullish sentiment on gold. However, it is important to note that the yellow metal is retracing its gains from yesterday as speculators engage in profit taking before tomorrow’s employment data. Look for support at 1330 and resistance is at 1342.
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