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Trade idea: Look at gold ahead of ECB decision
Clive Lambert from FuturesTechs is looking at gold. He says we have a "big day ahead" with the European Central Bank rate decision, and also the US non-farms out on Friday. Therefore he thinks it’s smartest to look at a trade which can be put on if there is a big move following the ECB news.
The ECB is expected to not cut rates when it meets on Thursday, despite a steep decline in inflation.
Friday's US nonfarm payrolls data will provide a chance to gauge when the Federal Reserve might begin winding down its USD 85 billion-a-month bond-buying program, which is linked to falling unemployment.
On the technical side, Clive says there is potential for further downside. He also explains gold recently topped out at USD 1360. In addition, the USD 1329 support level broke last week and sellers are re-appearing in gold. His key support level is between USD 1305 and USD 1306.
Baring all this in mind, Clive plans to sell a break at USD 1305 and is waiting to see if we’ll get a move on the fundamentals, ie the ECB meeting.
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01:36 minutes
Tags: bank of england, boe, clive lambert, commodities, commodity, ecb meeting, ecb rates decision, european central bank, federal reserve, futurestech, gold, investing, investment, profit, silver, taper, tapering, trade idea, tradingfloor.com, us jobs data, us nonfarms, usd