All Articles Tagged - gold

US Open Note – US data enhance dollar as NATO summit begins

Posted on March 24, 2022 at 2:50 pm GMT

NATO summit could set the next phase in geopolitical crisis World leaders are attending a series of summits in Brussels on Thursday, as NATO, the G7 and European Union hold crisis talks over Ukraine. US President Joe Biden will take part in all three meetings amid a backdrop of destruction in Ukraine, frozen global business transactions, and rising energy and fertilizer prices. The ongoing Ukrainian geopolitical crisis is already developing into another inflation nightmare thanks to the sanctions war, and [..]

US Open Note – Pound unsurprised by Sunak’s mini budget; stocks moderately down

Posted on March 23, 2022 at 1:58 pm GMT

Gold steady, bond yields decelerate The military disaster in Ukraine remained mainly unchanged on Thursday, making investors wonder whether the ongoing talks between Russian and Ukrainian officials are indeed aiming for a ceasefire or are just a channel to persuade the opposite side to give up on its conditions. The next landmark on the geopolitical crisis will be the extraordinary NATO summit in Brussels on Thursday at the level of Heads of states and Governments, including the group of Seven and the [..]

Daily Market Comment – Yen melts down as yields go through the roof

Posted on March 23, 2022 at 9:48 am GMT

Relentless rally in bond yields crushes the Japanese yen But stock markets don’t get the memo, keep grinding higher UK spring budget and another dose of Powell coming up Yen pain trade Global bond yields continue to power higher, eclipsing pre-pandemic levels with the blessing of central bankers who are desperately trying to put the inflation genie back in the bottle. Investors are essentially dumping bonds in a fire sale manner, worried about suffering further losses on the price as [..]

Technical Analysis – Gold extends sideways move but downside risks remain

Posted on March 23, 2022 at 9:06 am GMT

Gold has been trending downwards since early March when the price peaked at the 19-month high of 2,070. Although the price managed to halt its decline and currently experiences a consolidation phase, the technical picture seems to be deteriorating for the precious metal. The momentum indicators suggest that bearish forces continue to hold the upper hand. Specifically, the MACD histogram is currently beneath both zero and its red signal line, while the RSI is hovering in the negative area. Should [..]

Technical Analysis – Gold struggles to extend declines after hitting a floor at 1,920

Posted on March 21, 2022 at 7:34 am GMT

Gold prices are continuing last week’s move around the key level of 1,920, which is the 38.2% Fibonacci retracement level of the up leg from 1.680 to 2,070.40 and at the same time is confirming the pullback from the 1,950 resistance and the 20-day simple moving average (SMA). The short-term bias looks negative as the MACD keeps losing ground below its red signal line, while the RSI seems to be making its way near its 50-neutral mark, though a further decline is needed from both [..]

Weekly Comment – SNB meeting and PMI data eyed after the Fed’s rate hike

Posted on March 18, 2022 at 1:37 pm GMT

The Fed has started its tightening cycle, raising interest rates by 25 basis points and signalling six more rate hikes by the end of 2022. However, despite this hawkish tilt, equity markets staged a comeback, while the US dollar witnessed significant losses. In the upcoming week, an interest rate decision from the Swiss National Bank and a raft of PMI data from most major economies take centre stage, together with UK inflation and retail sales. The highlights: Flash PMI data [..]

US Open Note – Pound corrects lower after dovish BoE; commodities up again

Posted on March 17, 2022 at 2:29 pm GMT

Dollar weaker after hawkish FOMC The US dollar continued to trade lower against a basket of major currencies for the third consecutive day to reach 98.19 despite the strong hawkish message from the FOMC policy meeting late on Wednesday. The Fed acknowledged the Ukrainian geopolitical risks and slashed its growth projections by almost half to 2.8% for 2022 but raised interest rates by a quarter-percentage as widely expected. Strikingly, however, it signaled six more rate increases this year and pledged [..]

Technical Analysis – Gold struggles above 1,900; bearish-to-neutral bias in short-term

Posted on March 16, 2022 at 10:48 am GMT

Gold prices are moving sideways after the aggressive selling interest from the 19-month peak of 2,070.40, returning back near the 1,900 mark. The RSI indicator is flattening around the oversold region, while the MACD is still developing with weak momentum in the negative area. In trend indicators, the 20- and 40-period simple moving averages (SMAs) posted a bearish crossover in the near-term. Should the market extend losses, support could be met between the 200-period SMA at 1,890 and the 1,883 [..]

US Open Note – US stock markets open higher, dollar slips as yields retreat

Posted on March 15, 2022 at 1:55 pm GMT

Dollar softer ahead of FOMC The US dollar rallied earlier today against the Japanese yen as US Treasury yields spiked to multi-year highs. However, the greenback erased its gains and inched lower later in the session, with the pullback in yields and profit-taking probably being the major driving forces behind this move. The focus will now turn to the outcome of the two-day FOMC monetary policy meeting starting later today, where investors will gain invaluable insights into the pace and timing of [..]

US Open Note – Markets hope for peace talks; US stock futures mixed

Posted on March 14, 2022 at 2:15 pm GMT

Risk mode on as Ukraine-Russia start the fourth round of discussions While there is no clarity on what the positive assessments from the latest Russian-Ukraine high-level talks are, markets continued to behave like the fourth-round of talks would result in another positive outcome today even if Russia’s attacks expanded closer to the Polish borders, and the war conditions remain largely unchanged. Another reason for the current risk-on tendencies is perhaps the fact that investors have started to adjust to the [..]

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