Dollar Slip Boosts Gold

Morning Report: 9.00 London

• This morning, the US dollar index continues to back off, with the Greenback set for its third straight day of losses. Gold and silver are capitalising on the move, with both precious metals riding high this morning on the back of yesterday’s moves.
                                                                 

                               

• Elsewhere, the NZD/USD and AUD/USD are moving higher despite very average economic data coming from China this morning.                  

                               

• The euro is also enjoying a respite from the dollar pressure, though did close some way off the highs last night.

                             

• The yen pairs continue to back off, with the USD/JPY essentially matching the dollar index.

                             

                             

• Stock markets came a long way off the lows yesterday to close virtually unchanged, which may give the bulls some hope today.

                             
                             
Coming up today:

• Coming up today we have UK trade balance at 09.30.

• This is followed by US crude oil inventories at 15.30.

• This evening we have the New Zealand rate statement.

Trade Idea:

• Gold has recovered well in the last few days, but it would take a brave man to buy given the longer term trend for commodities, precious metals and the US dollar.

                             

As such, this push higher could be a selling opportunity and a good way to play this is a LOWER trade predicting that gold closes below $1200 in 9 days time for a potential return of 341%.

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