Recap of Sunday post – GOLD retrace

On Sunday evening I have covered GOLD and its steep angle of moving north. Today I was very keen to watch the release of existing home sales. The number was released far below expectations: 3.83 million homes sold (lowest sales since May 1995) vs expectation of 4.6 million is a big surprise and of course dollar pairs acted according to it.

First the GOLD really retraced almost exactly towards the level I was talking about and on a release jumped higher covering all the retrace. Today we could have seen very nice correlation between $INDEX (left part of the picture) and price of GOLD (right part of the picture). This release also effected equity markets with S&P 500 being down 1.43%. I ll try to cover the other Sunday post later tonight.