Gold Briefly Glitters

Morning Report: 7.15 London

• Precious metals are heading back down again this morning after a short term surge yesterday. Commodities across the board are following suit.
                                                                 

                               
                                

                               

                                                         
• The dollar index is moving higher as the commodity pressure eases, with the yen pairs benefiting the most. The USD/JPY and AUD/JPY are both up 0.51%.

                               

• The euro is struggling however, down 0.28%.

                               

• Overall the US dollar index is moving back towards the highs, while the S&P 500 recovers from a three day sell off.

                               

                               

                             
Coming up today:

• Coming up today we have UK construction PMI at 09.30.

• This is followed by some Fed speeches around 13.00, with FOMC member Fischer speaking at 13.10 and Fed Chair Yellen at 13.30.

Trade Idea:

• Gold over reached itself yesterday and this could be a good selling signal.


                             

A good way to play this is a LOWER trade predicting that gold will close below $1175 in 7 days time for a potential return of 240%.

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Summary: