What's Up With Gold Tonight?

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Lemonyellowschwin's picture
Lemonyellowschwin
Status: Platinum Member (Offline)
Joined: Apr 22 2008
Posts: 561
What's Up With Gold Tonight?

Gold

Sorry, I'm not sure how to save this as a snapshot, but at 00:47, gold is up to $1214 in overseas trading.

You don't often see these kinds of big moves overnight.  What's going on? 

Erik T.'s picture
Erik T.
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Joined: Aug 5 2008
Posts: 1234
Re: What's Up With Gold Tonight?

The big up-move happened just after the Hong Kong exchange opened. When you look at the Kitco Gold chart (the one with three days of colored lines), always note the exchange hours across the bottom. They give good insights into how the perspective of traders in different geographies affects the market.

During the course of the day Tuesday when gold was trading in New York, there was a fairly predictable "flirting with a round number" pattern in the chart, where 1200 became a big psychological resistance level just because it's a big round number. The minute the Hong Kong exchange opened, gold blasted up to 1203 in minutes, paused only briefly, and traded over 1216 by lunchtime. As I write this (just after 4pm here in Hong Kong), we're in a consoldiation pattern between 1211 and 1216.

I wouldn't be surprised to see a return to at or near 1200 before or during Wednesday's New York session, but I have a feeling we're headed higher from there. I have a limit order to buy a few more contracts at 1202 if it gets back down to that level.

Erik

p.s. I definitely think this subject matter is important and worth discussing, but I wonder if we should have an "All things gold" thread or something to keep this managable... There is this thread, the "Gold just hit $1200" thread, the "Where is gold headed" thread, the previous "Gold's near future" threas, and as the action gets more interesting we're sure to see others. I think it would be better for site readability if the moderators consolidated all gold price action discussions into a single thread, but that's just my suggestion.

 

Davos's picture
Davos
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Posts: 3620
Re: What's Up With Gold Tonight?

Japan's QE.

Mr. Fri's picture
Mr. Fri
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Joined: Feb 21 2009
Posts: 220
Re: What's Up With Gold Tonight?
Davos wrote:

Japan's QE.

Davos, is that for sure or just a guess?

Erik, it would be interesting to know if there's any "round numbers" in Asian money (yen?) that's just above 1200 USD.  Perhaps $1200 is the lid in the US market because it's a round number but it blows through because Yen has a round number slightly higher. For example, Yen might have a lid at 110,000 = $1257.  Just a thought.

 

Erik T.'s picture
Erik T.
Status: Diamond Member (Offline)
Joined: Aug 5 2008
Posts: 1234
Re: What's Up With Gold Tonight?

Mr Fri,

Gold is traded and quoted in USD - so far as I know, in all markets worldwide. So even the guy in Tokyo is looking at a screen with gold quoted in USD. For that reason the round numbers of interest are the USD figures.

Erik

 

Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 220
Re: What's Up With Gold Tonight?

I was wondering that as I was writing my post. I didn't think it would be so in China or other large countries around the world.  Thanks for clarifying.

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