We saw Gold trade session lows on the stronger ADP number before the shocking US GDP data release, since then gold has bounced back up to trade new session highs of 1297.
Gold 5 minute chart
Yesterdays highs on gold comes in at 1301 on my screen and above there is the 1306. A slightly softer number could be blamed on seasonal factos or the weather but this is a big miss on expectations, with a 0.1% read very close to contraction, I am not convinced this is enough to warrant a change in the monetary policy stance from the FED but it puts a lot of emphasis now on next months release, should we see another miss or even contraction expect the FED’s stance to change and the dollar to come under downside pressure.
