All Articles Tagged - gold

US Open Note – Stocks pare gains; European currencies slip too after nice rally

Posted on May 18, 2022 at 1:40 pm GMT

Recession not fully priced in Who will pay the price? That’s the question that bothers investors nowadays as businesses feel more confident to transfer rising production costs to consumers and central banks constantly message markets that additional rate increases are the immediate solution for spiraling inflation. Further monetary tightening is largely anticipated in the UK as inflation clocked in at a new 40-year high of 9.0% y/y as expected in April, while the Fed chief stated yesterday that rates could [..]

Technical Analysis – Gold range-bound within bearish channel

Posted on May 18, 2022 at 9:41 am GMT

Gold got trapped within the $1,798 – $1,832 region following the upturn from the three-month low of $1,786. Specifically, the precious metal is encapsulated between the resistance line stretched from the record high of $2,079 and the support line from the low of $1,450. In the one-month picture, the market is navigated by a bearish channel, with the 20-period simple moving average (SMA) on the four-hour chart currently cancelling any bullish moves towards the channel’s top boundary at $1,816. The [..]

US Open Note – Dollar cools off, euro turns up and gold back to $1,800

Posted on May 16, 2022 at 12:53 pm GMT

Chinese data drives dollar higher In the wake of disappointing Chinese economic statistics, which sent the British pound and the Australian dollar down, the US dollar held onto its two-decade high earlier in the day. The surge in the dollar has been fuelled by China’s long-term economic lockdowns, which have contributed together with other uncertainties to an almost 10% rise in the dollar index since the beginning of 2022. In April, China’s retail and industrial activity declined substantially due to widespread Covid-19 lockdowns, which kept workers [..]

Technical Analysis – Gold around 1,800 border, bearish risks linger

Posted on May 16, 2022 at 9:52 am GMT

Gold is trading near its lower Bollinger band around 1,793 after the four-week decline from the 1,998 peak was curbed by the 1,780-1,788 support base, which was formed by the lows from the second half of December 2021 until the end of January 2022. The longer-term 100- and 200-day simple moving averages (SMAs) are reflecting the stifled bullish trend in the price, while the rolling over of the 50-day SMA, is suggesting that the descent in the commodity has deepened. [..]

US Open Note – Dollar unlocks 20-year high; euro breaks $1.04

Posted on May 12, 2022 at 12:57 pm GMT

Dollar surges but dips against yen The dollar touched a two-decade high against a basket of currencies after US inflation fell less than expected in April. Dollar/yen is declining by 1%, meeting the 129.40 level. Despite increasingly hawkish ECB rhetoric, the euro is trading below $1.0400, falling by 1.0%, with the next key support coming at $1.0340. Euro/yen and pound/yen are plummeting over 2% today. US stock futures are suggesting a strong negative open, continuing the several days of losses. The safe-haven greenback gained support from a worldwide equity sell-off because of investor concerns that central banks are behind the curve [..]

Technical Analysis – Gold’s descent softens but bearish risks linger

Posted on May 11, 2022 at 2:15 pm GMT

Gold is flirting with the red Tenkan-sen line at 1,848 after registering a three-month low of 1,832. Nevertheless, the falling simple moving averages (SMAs) are endorsing the downward bearing in the precious metal. The Ichimoku lines are reflecting that selling interest has abated to a degree, while the short-term oscillators are demonstrating the present pick up in positive momentum. The rising RSI, and positively charged stochastic oscillator are both promoting additional upside price action. Moreover, the MACD, which is in [..]

US Open Note – US CPI beats expectations and rises by 8.3%; dollar moves up again

Posted on May 11, 2022 at 1:36 pm GMT

The CPI rate ticked up by 8.3% in the year that ended in April. The annual CPI decrease was the first since August, but it was the eighth month in a row of gains of more than 6%. In March, the Consumer Price Index (CPI) rose 8.5% year-over-year, the highest increase since December 1981. After the release of higher-than-expected CPI figures, the dollar initially rose. The dollar index is showing positive signs as it jumped beyond 104.00; however, US futures are leading lower, suggesting a [..]

Technical Analysis – Gold shows no intention of altering bearish phase

Posted on May 9, 2022 at 7:52 am GMT

Gold started Monday’s session on the wrong foot of what it could turn into its fourth consecutive week of declines. The 1,870 area is currently buffering selling tendencies, but the momentum indicators are still feeding scepticism. The RSI is struggling to exit the bearish area, while the MACD remains comfortably below its red signal line despite stabilizing lately. Discouragingly, the Stochastics are looking for a negative intersection following the bounce off the oversold region. Adding to the dim signals is the bearish [..]

US Open Note – Pound crashes on dovish rate hike; Wall Street eyes bearish open

Posted on May 5, 2022 at 1:32 pm GMT

Pound crashes after BoE policy decision The Bank of England stuck to its March guidance, confirming expectations of a 25bps rate hike to 1.0% on Thursday although three out of nine board members surprisingly voted for a sharper 50bps increase. Its inflation projections for the current year moved up to 10% on the back of higher household energy prices and projected additional rises in October, while its growth estimate is now warning a dip slowdown over the next year as [..]

Daily Market Comment – Fed downplays aggressive hikes, BoE decision next

Posted on May 5, 2022 at 8:37 am GMT

Fed raises rates but overall message not as hawkish as markets expected Dollar takes a step back, stock markets and gold come back swinging Bank of England meeting today might play out in a similar manner Don’t fear the Fed As widely expected, the Federal Reserve raised interest rates by half a percentage point and announced that the balance sheet reduction process will commence in June. There was a lot of speculation ahead of the event that the Fed would [..]

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