All Articles Tagged - gold

Technical Analysis – Gold consolidates after move higher but momentum indicators are not encouraging

Posted on December 14, 2022 at 9:24 am GMT

Gold is consolidating following yesterday’s potent move higher on the back of economic developments. It printed the highest level since June 29 at 1,824, continuing the recent trend of higher highs. The medium-term trend remains bullish, also supported by the 50-, 100- and 200-day simple moving averages (SMA) sloping upwards, and the ascending November 29 trendline. However, the momentum indicators do not seem overly impressed. The ADX edged above the 25 threshold but the respective sub-components, D+ and D-, continue [..]

Commodities year ahead 2023: Gold and oil outlook tied to Fed and Ukraine

Posted on December 13, 2022 at 9:17 am GMT

The entire commodities spectrum rallied in the first half of 2022 as the war in Ukraine sparked major supply concerns for energy and agricultural commodities. But heading into 2023, it is demand concerns that have taken over and are clouding the outlook. Gold and oil have lost their shine amid worries that the Fed and other central banks may overtighten, and that China is not doing enough to boost its economy after a year of jumping in and out of [..]

Technical Analysis – Gold bulls look exhausted near 200-day SMA

Posted on December 12, 2022 at 8:01 am GMT

Gold prices have been battling with the 200-day simple moving average (SMA) over the last week, posting some spikes towards the 1,810 resistance level. Any movements beyond these obstacles could add to the optimism for more aggressive bullish actions. However, the technical oscillators are suggesting some losses in the near future. The MACD fell below its trigger line in the positive territory, while the RSI is sloping downwards above the neutral threshold of 50. Should weakness extend below the 200-day SMA line, support [..]

Daily Market Comment – Gold gets its shine back, stocks drift lower amid flight to safety

Posted on December 8, 2022 at 9:58 am GMT

Sharp decline in US yields saps the dollar, breathes new life into gold Oil hits new lows as recession worries mount, despite China reopening Canadian dollar cannot capitalize on surprisingly large rate hike Give me shelter Investors have started to play defense. There’s a distinct sense that the main threat next year will be slow or negative economic growth, replacing inflation as public enemy number one. This has induced a quiet flight to safety in financial markets as traders attempt [..]

Technical Analysis – Gold trades sideways as stochastic points to bullish divergence

Posted on December 7, 2022 at 9:31 am GMT

Gold is trading sideways after hitting 1,810 on December 5, the highest level since July. Akin to other financial assets, the gold market appears to be in waiting mode ahead of an eventful period. The price is trying to stay above the busy 1,770-1,763 area. The 50- and 200-day simple moving averages (SMA) at 1,770 and 1,763 respectively, the November 29 upward sloping trendline and the 23.6% Fibonacci retracement of September 28 – December 5 uptrend at 1,763 appear to be a [..]

Daily Market Comment – Stocks lose altitude, dollar reawakens after solid US data

Posted on December 6, 2022 at 9:40 am GMT

ISM services survey signals US economy is still running hot Traders step up bets on Fed terminal rate, boosting dollar RBA delivers no surprises, yen retreats as US yields spike Inflation strikes back Inflation concerns returned to haunt financial markets on Monday, after a closely watched survey suggested that US economic activity gathered momentum heading into year-end, piling more pressure on the Fed ahead of next week’s rate decision. Despite a series of shock-and-awe rate increases this year that were [..]

Technical Analysis – Gold faces August’s resistance; still supported

Posted on December 5, 2022 at 12:30 pm GMT

Gold sustained a muted tone during Monday’s early European trading hours, consolidating its latest spike around the August resistance territory and the 1,800 level despite inching to a new high of 1,809. Overbought signals become more evident as the RSI weakens below 70, while the stochastics look for a bearish crossover above 80. Yet, sellers may not take action, unless the 38.2% Fibonacci retracement of the 2,070–1,614 downleg at 1,788, which was a key barrier to downside movements during previous months, proves fragile. Should [..]

Daily Market Comment – Risk-on takes a hit as China protests spark unease

Posted on November 28, 2022 at 9:54 am GMT

Yen jumps, yields slip as anti-lockdown protests in China dent sentiment Oil slumps to one-year low amid rising concerns about Chinese demand Stocks start the week in the red as NFP and other crucial data eyed Growing protests in China rattle markets Risk assets took a knock at the start of the week as worries about instability in China and how the country’s unyielding zero-Covid policy might further blight the outlook led investors to search for safety. Anti-lockdown protests started [..]

Technical Analysis – Gold consolidates after advance pauses

Posted on November 28, 2022 at 9:16 am GMT

Gold has been losing ground since early March, generating a profound structure of lower highs and lower lows within a descending channel. Even though bullion recovered some ground after managing to cross above its restrictive trendline in early November, its rebound currently appears to be running out of steam. The momentum indicators currently suggest that bullish forces are holding the upper hand. Specifically, the RSI has flatlined above its 50-neutral mark, while the stochastic oscillator is ascending near the 80-overbought zone. [..]

Daily Market Comment – Dollar recovers, oil extends slide, stocks drift sideways

Posted on November 21, 2022 at 9:50 am GMT

Dollar attracts safe-haven flows as China tightens restrictions Demand worries deal heavy blow to oil prices, gold retreats too Stock markets trade sideways, but fundamentals spell trouble Dollar regains ground The US dollar spent most of this month on the ropes, pressured by signs that inflation is simmering down and speculation that the Fed is in the final chapters of its tightening cycle. Yet, the reserve currency came back swinging on Monday, regaining lost ground with some help from safe-haven [..]

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