Gold price drops

Morning Dynamic Traders

NFP is due out today and yesterday saw some irratic behaviour on the markets. Gold being one of them.

The Gold trade I was triggered in a few days ago has now been stopped out, as price plummeted. Since the US markets opened yesterday, price took a drastic decline (check 60 min chart). Fundamentals may have played its part, plus speculators are suggesting that the continued strength in the US Dollar has put pressue on Gold.














Now looking at technicals, what we have is price possibly trying to test the VI. This will be an interesting point for price - will it breakdown and continue to weaken, or will it use the VI as a trampoline to bounce up? Whatever the case, patience is key right now.

This trade was a good example of the markets just doing whatever it likes - fundamentals can always play it's part despite technical confluences being strong enough. At the time of placing my trade I was confident and conflict-free and knew exactly what my loss would be if the trade turned against me. So my learning on this trade is simply a reminder that trading is all about probabilities and losses are simply the cost of trading.

Now I will simply wait and watch to see what price will do next. I been triggered in the CHF and will update on this next week.

Have a great weekend.
Sonia Molina