I use OANDA for my broker and I have been watching this pair ocer the last few days and listening to everything in the news. Today I jumped in and made a quick couple hundred pips from it. Does anyone else watch or trade this pair? Any strategies or comments about how it moves?
Nice another gold trader 
I’m torn at this point about further upside with gold. I would be happy if gold consolidates around $1k and the media frenzy dies down. I’m always concerned about a top in the market whenever too many people are talking about a trade.
Would you mind posting a chart of that move you caught…?
What triggered your entry?
Do you wanna learn how Gold moves or do you wanna freeload…?:D:D
I don’t want to free load I really do want to learn how it moves.
I have been watching it for a couple of days and watching the news and it seemed the price would go a little over 1k then down to 990’s so I bought 1 unit and it went from something like 993 to 995 so I sold it. (I have the exact entries and exits at home) I guess it would be considered more of a scalping trade.
I didn’t base this trade off of any kind of S&R or trendline or anything because I use MT4 for my charts and they didnt have this pair listed and OANDA charting is not my favorite but last night I looked at it a little but I didnt really want to draw any lines because I have no idea if this pair behaves anything like normal pairs. I don’t know if its mostly technical or news related that makes it move. So much to learn!! Happy trading!
So you had a punt and got lucky.
The important thing right now is whether we get a weekly close above 1003 for the first time in history :D:D
It’s both.
The major driver of Gold is inflation.
There are two opposing views on Gold. One side sees Gold as a commodity and the other side sees Gold as currency.
Nevertheless both sides see Gold as a hedge against inflation.
But the most important thing in Gold that it has [B]two[/B] markets. One market is the physical market expressed by the daily AM and PM fix in London and the other market is the paper markets in NY, Tokyo and Sydney.
The pairs behaviour is very much influenced by these markets.
Looks like it closed above 1006.
I got really lucky with the trade, but I tried to do it “safely” one could say, I still used my same money management guidelines as I do with my other trades risking only 2% of my account and all of that. For this pair do those guidelines still remain sound since it fluctuates so much each day?
Is there any better charting than OANDA for this pair? Do you plot trendlines and SR zones the same way?
A hedge against inflation makes since since we have printed so much money over the last year gold seems to have really climbed since last september when all the bailout talk started.
Yeah, 1006.03
The PM Fix came in @1008.25
Gold moves [B]inverse[/B] to the USDX.
It means Gold rises and the USDX falls. USDX and Gold [B]don’t[/B] rise together.
You’re right. Gold is very volatile.
What time frame you’re using…?
I use software from eLine. I don’t know OANDA.
I plot trendlines and S&R zones in Gold [B]and[/B] USDX. Because of the [B]inverse[/B] relationship of the two. I never take a trade in Gold without TA in regards to the USDX.
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With the next hurdle the March 2008 record of $1,035.
In euro and sterling terms, spot bullion broke above its 100 and 200-day moving averages, both considered as buying signals.
That’s the technical perspective. If we would be looking at another instrument this would be strong pointers to consider a LONG trade.
But Gold isn’t just another instrument…
Because the Bullion Banks will have their say. They will be throwing everything at Gold to prevent Gold from making new record highs as they have done in the past and will continue to do so.
That’s one of the reasons why Gold is so volatile and unpredictable.
The Bullion Banks which are equivalent to western Central Banks have no desire to see record Gold prices because that would give a clear signal that inflation is picking up. And that’s something every Central Bank doesn’t want to see because the primary task every Central Bank has is to keep inflation under control.
That’s their official line anyway…
Bullion Banks have kept Gold in a daily range of about 2% for the last couple of months.
That range has been stepped up by about 2%. It is now between 993.60 and 1003.00.
Commodity inflation seems to be non-existent as a force driving gold higher, like we had when oil was hitting $147. Are you thinking this is mostly due to inflation of the monetary base or the rise in stocks as a measure of inflation?
I’m a believer in the China story helping drive up gold prices with all of the recent discussion about China diversifying their USD reserves.
I was looking at that. I have been trying to read up on the usd index and bullion banks over the weekend.
I read an article about the central banks paying dividends similar to their overnight funds rate on funds banks keep in the reserve. They said they are hoping that will curve in flation a bit.
I believe it is due to monetary base inflation. Especially after the BIS is talking about taking over [B]all[/B] of the nearly worthless OTC Deriviatives from the investmentbanks.
That remains to be seen. If that is the case we should see the all time high of 1032oz very soon.
Because if a country decides to use Gold as a hedge it [B]always[/B] drives up the price of Gold just like it did in the 80’s.
It is simply supply and demand fundamentals.
Well, it does. Until the funds are needed by the banks because there is more OTC junk to be written off. Commercial Real Estate loans are the next big headache for the FED.
That reminded me of a quote I read last week by a Chinese official
�Gold is definitely an alternative, but when we buy, the price goes up."
FT Alphaville � Blog Archive � What’s driving paper gold, redux
What a dilemma…
lol That’s why I don’t believe this China story. lol
I believe what we are seeing is simply a short lived spike in the price of Gold because there are small time speculators been sucked into the Gold market by all the talk of inflation.
Gold is continuing its march higher. I wonder who will fill Ed McMahon’s role in this years Cash4Gold superbowl commercial.
This is going to get really interesting [B]very soon[/B].
We are slowly getting closer to that All Time High in Gold…
[B]$1035/oz = $1032/oz Spot[/B]
Gold broke $1026/oz minutes ago.
[B]If[/B] at the same time the EURO marches towards 1.50…and I expect it to do so if Gold keeps going closer to it’s All Time High…with the AUD and ZAR not far behind…we might see the “invisible hands” coming in and do something about it.
Technically speaking we would see a [B]Double Top[/B] in Gold. And that in itself could be a [B]Bull Trap[/B].
I happend [B]really[/B]soon.
If the EURO goes past 1.4810 there isn’t much in between to stop the EURO going to 1.5000.
Mhmmm…
this will get interesting again very soon.
The Bullion Banks don’t like those lofty heights of Gold.
For that matter I’ve shorted the Aussie Dollar against the Greenback.
Contrarian view so to speak.
We shall see…
Thats the way Gold is seen [subjectively] from a purely Technical Perspective and it’s Relation to the USDX…
Gold is setting up an ascending triangle on the hourly interval and it has overlapping supports (daily) just below. Even if the hourly ascending triangle fails, a retracement to around $1028 could be considered part of a healthy pullback.
This breakout is occurring without the U.S. Dollar Index breaking down and out of its range. 75.912 on the U.S. Dollar Index must be taken out to the downside, or gold is going to correct.
From a monetary perspective the situation is different.
Sovereigns [Countries] buying physical Gold in the cash market on dips therefore taking physical supply away from the cash market on a step ladder basis putting pressure on Gold and it’s supply.
It remains to be seen wether the Bullion Banks want to engage in this type of “warfare”. 
My personal opnion @present is that the Bullion Banks are preparing to do so. How long it will last is different matter.