Gold prices continue to fall

Gold prices continue to fall, as the spot price stands at $1219.60 per ounce on Thursday. XAU/USD is at its lowest levels since late December of 2013. On the release front, there are three key events on the calendar Building Permits, Unemployment Claims and the Philly Fed Manufacturing Index. As well, Federal Reserve Chair Janet Yellen will deliver remarks at an event in Washington.
The US dollar gained close to 100 points on Wednesday following the Federal Reserve statement. The Fed statement reaffirmed that interest rates would remain ultra-low for a “considerable time” after the asset purchase scheme (QE) ends next month, but surprised the markets in hinting that once a rate hike was introduced, rate levels could move up more quickly than expected. As expected, the Fed trimmed QE by $10 billion/month, and the remaining $15 billion/month is scheduled to be phased out in October.

Texas Oil

West Texas Intermediate crude fell from a two-week high after an industry group was said to report an increase in U.S. inventories.
WTI slid for the first time in three days. The American Petroleum Institute reported yesterday that supplies rose 3.3 million barrels last week, according to Bain Energy. The Energy Information Administration will release its inventory data today. Brent climbed as Libya halted its biggest oil field.The build in the API report was quite big, said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. If we get a confirmation from the EIA, I wont be surprised if WTI starts to give up more of yesterdays gains. Brent is focusing on reports that Libya has reduced production.WTI for October delivery slid 17 cents to $94.71 a barrel at 9:03 a.m. on the New York Mercantile Exchange. The volume of all futures traded was about 6.8 percent above the 100-day average for the time of day.
Brent for November settlement advanced 22 cents to $99.27 a barrel on the ICE Futures Europe exchange. Volume was 3 percent above the 100-day average. The European benchmark crude was at a premium of $5.61 to WTI on ICE for the same month. It closed at $5.24 yesterday.

MT4 Chart Application

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The Australian dollar,,Japanese yen

The Australian dollar briefly dipped below the 90 level on Tuesday, as AUD/USD dropped to its lowest level since March. Late in the European session, the pair is trading in the mid-0.90 range. On the release front, the RBA minutes stated that interest rates would remain at current levels and that the Australian dollar was overvalued. In the US, inflation numbers remain soft, as PPI came in at 0.0% last month.
The RBA minutes contained no surprises, as the minutes focused on interest rate levels and the value of the Australian dollar. The RBA said that rate levels would remain unchanged and took a swipe at the Aussie, noting that the exchange rate remains “above most estimates of its fundamental value.” There was further pressure on the currency as RBA Assistant Governor Christopher Kent said on Tuesday that a decline in the Australian dollar would increase demand for local producers. Perhaps the RBA policymakers are in a better mood this week, following the Aussie’s losses of over 300 points against the US dollar.

The Japanese yen remains practically unchanged this week, as USD/JPY trades just above the 107 line. On the release front, US inflation numbers remain soft, as PPI came in at 0.0% last month. In Japan, BoJ Governor Haruhiko Kuroda spoke at a press conference in Osaka.
US inflation indicators remain soft, as underscored by weak manufacturing inflation numbers in August. PPI, a key event, dipped to just 0.0%, a 3-month low. The estimate stood at 0.1%. Core PPI slipped to 0.1%, down from 0.2% a month earlier. This matched the forecast. We’ll get a look at consumer inflation numbers on Wednesday, with the release of Core CPI and CPI.

Gold prices are steady

Gold prices are steady on Monday, as the spot price stands at $1233.77 per ounce in the European session. The metal had an awful week, shedding about 3% against the surging US dollar. In economic news, there are no major US releases on Monday. The week started out on a positive note, as Empire State Manufacturing Index jumped to 27.5 points, well above expectations.
US numbers wrapped up last week on a high note. Core Retail Sales improved to 0.3%, edging above the estimate of 0.2%. Retail Sales posted a nice gain of 0.6%, well above the estimate of 0.3%. There was excellent news from the UoM Consumer Sentiment, which bounced back from a weak reading in July and improved to 84.6 points, its best showing since November 2012. The forecast stood at 83.2 points. These indicators point to an increase in consumer confidence and spending, which underscore a deepening economic recovery.

Trends in Forex and Stock Trading

Traders are using two simple moving averages on the chart of the S&P 500 Index. This helps to determine the trend even though it is delayed.
The main thing to remember is that this is not a timing technique. It is only to help traders see how strong or weak the current trend is and when an trader may want to move their money into safety or be more aggressive and add to their positions.  Moving averages are a trend following technical analysis tool.  They are created by averaging past closing prices. Thus we are using past prices, we are seeing what the trend was, not necessarily will be however it is a good indicator if the trend will continue.
To use this particular trading technique, lets look at a weekly chart of the S&P 500 Index.  It has both a forty week simple moving average (SMA) and an eighty week SMA on the chart.  If the market is bullish, price should be above the 40 SMA.  The 40 week SMA should also be higher than the 80 week SMA.  A bear market is signaled when the 40 week SMA finally crosses below the 80 week SMA.  When this happens, the forex or stock markets usually move down quickly and for an extended period of time.  A trader should look to trade those securities that thrive in bearish markets when this crossover occurs.  They can sell futures, buy puts, or even invest in inverse ETF’s.You should also keep in mind that this technical analysis technique is not a perfect science.  Nothing is perfect when trading but this can help you make winning trades.

Trends in Forex and Stock Trading

USD/JPY

The Japanese yen continues to slide, as USD/JPY pushed above the 107 on Thursday. This marks the pair’s highest level since September 2008. In economic news, US Unemployment Claims rose to 315 thousand, well above the estimate. There are no Japanese releases on Thursday.
US employment numbers continue to raise concern. Last week’s Unemployment Claims rose to 315 thousand, the largest number of claims in 10 weeks. The reading was much higher than the estimate of 306 thousand. This follows soft numbers from JOLTS Job Openings and a dismal Nonfarm Payrolls last week. The troubling job numbers are unlikely to affect the Fed’s plan to trim QE next week, but a weak labor market could postpone plans to raise interest rates by mid-2015.
Over in Japan, after some disappointing manufacturing indicators earlier this week, the BSI Manufacturing Index provided some sorely needed positive news. The index bounced back from a reading of -13.9 points in Q1, rising to 12.7 points in Q2. This surprised the markets, which had expected the indicator to fall to -10.3 points. With zero separating contraction from expansion, the indicator points to surprisingly strong optimism from large Japanese manufacturers. Earlier in the week, Core Machinery Orders came in at 3.5%, sharply down from 8.8% in the previous release. This followed a weak reading from Tertiary Industry Activity, which posted a flat reading of 0.0%.