The charts in the gold market remain negative with yesterday's large range down extension generally held into today's trade. In fact given signs of an uptrend in the dollar, signs of a downtrend in gold should be embraced.
In fact the market has not shown support from news that India might be considering a reduction of their import duty on gold from 10% to 4%! Furthermore the world Gold Council news this week of rising overall global gold demand in the first quarter, ongoing central bank gold purchases in the first quarter and an increase of Indian gold buying in the 1st quarter of 159 tons that should have been enough fundamental news to have driven gold higher.
Unfortunately for the bull camp the gold market is currently suffering an exodus of capital headed for equities which are thought to be one of the few games in town. Furthermore the market continues to embrace ideas that a US/Chinese trade deal is near and that seems to increase the allure of equities even more and that logically comes at the expense of risk instruments like gold.
Not surprisingly gold ETF saw another day of selling with 43,890 ounces sold bringing this year's net sales to 184,071 ounces.
The trade is looking for a gain of 185,000 for the April payrolls report today, but it will take a very disappointing number to boost gold prices but even then gold might not benefit as it failed to rally off slack numbers earlier in the week.
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