One of the interesting movers on Friday in the payrolls aftermath was gold. It was a relatively difficult report for the equity and fx space to decipher, but gold moved decisively higher. In a post from a few days ago, I mentioned that I had little short-term conviction in gold and preferred to play the ranges. As gold spiked higher to 1830/oz, I got short in a small trade on the possibility gold came down off resistance.
The chart below shows the gold price since Friday and you can see the circled spike higher in the aftermath of the payrolls report, my short entry and where we are now. It looks like this is consolidating, so I am going to jump out of the trade if we don't break through the pivot by the end of the day.
Just highlighting this particular trade since it's a very nice example of how we retrace back the move following a major news event and how that retracement might take place over a few days.
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