LEHMAN BROTHERS GOST HIT CHINA

 Hi everyone today I'd like to speak about China a power in expansion which would to become the main economic power in 2030. About China importants business newspapers wrote articles every day.

In China it seems that things are no so good and People of Communist Party know that.China is confronted with bad loans crisis. To mask this problem China Central Bank and clampdown the inflation introduces 1 year Loan Prime Rate (LPR) lending benckmark.

Making a parallel with the situation in US 2007-2008 we can say it resemble in both casses we have bad loans.This situation causes concer to chinese autorities they ensure us that everything is under control and at the end we still to wait sa see what's going happen.

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Image source: The guardian)

NON FARM PAYROLLS DISAPPOINTED ME FOR THE FIRST TIME

Hi everyone as I said in my last article I promise that I try to write article everyday.As you probably know the US Congress passes the bill and rise the debt.Starting with this movements the things seems to go in to the normal on financial markets.

The important economic data of this week was with no doubt Non Farm Payrolls important economic indicator in US.This indicator measures the number of jobs excluding farming industry who was created in the previous month,it is called the indicator which move the markets.

Traders of all round the world wait this economic report for every month ,at ussualy it's published  friday in the first week of month.

After the goverment was shutdown the public institutions  closes their activities and reopen after the bill passe in Congress.In september was created only 169 K jobs in us,for october the economists forecast 182 K jobs.But as many time economists were wrong the official data was 148 k jobs in us in octomber and the unemployment rate 7,2%.

The reaction in Fx markets was sell us dolar.But where came my frustration? All most of all currencies pairs with us dolar reported important movements but with only exception (USDJPY)

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CONFIDENCE IN GOLD WAS RETURNED??

It passed a long time since I wrote the last article.Starting with today I promise that I try to write articles every day.Event that caught  my attention last week was the Congress passes bill and raise the us debt and reopen the government.

What followed  this deal was important gains in stocks.In FX markets those who traded against the us the dolar had gained.
It seems that the global economy is in trouble,us economy was threatened with default,Japan economy reported moderatly growth,eurozone area stagnates.Despite to this problems it seems that investors look attention on commodities in special gold.

The precious metal reported important earnings in the last week.The question is?  If the scenario from 2009-2011 will returned and the gold will become a safe haven.Will see what's will happen. In the chart you see how the resistance line was broken.

In the next period  I see buying opportunities for gold on weekly time frame you should wait to retest the support line 1315,12
 after the retest of this level you can choose to enter with buy orders started with 1328  first profit target ,stop loss behind support level 1246.

After the price will reache the level 1315 the pattern which has been formed is a double bottom ,I recomend to no enter immediately with buying orders you shoul wait untill the price will retest the level  of 1431,89 and enter with buying orders started with 1452,78 and the second profit target will be near the next level 1548,38.
This is my personal view about what will happen with gold in the next period.A don't foreget invest in stocks,fx,commodities markets implies risks.